I will not argue with your first statement. for the evidence is clear. Yes of course cash spent on capex cannot be used to pay a div but as it moves thru cashflow statement not P&L it does not affect retained earnings. So if AMRQ makes a $200m profit in the 18 months to dec 27 (it could spend $150m on building BA and still pay a div with spare cash and as it would then have retained earnings of $97m. I was only suggesting a nominal 1p per share to start with (so a cost of $6m)
Well, I am a moron then because I assumed the folding cash for asset capex would come out of actual profits in a rush over a couple of years maybe. However it is presented on paper, I thought the actual cash would diminish rapidly leaving less to distribute to shareholders.
Of course they will but you are confusing P&L and cashflow statement. capex is on the latter. so let us say between july 1 2026 and end 2027 PTP is $200m. $100m can go on capex on building BA mine. that capex is then depreciated over 15 years or whatever LOM is in 2028 onwards P&L but is not a hit on 2027 P&L so does not affect retained earnings
It makes you think. Pull all of my money out of the market and put it into cash with the best yields about 5% on savings accounts.My portfolio yields 8.7% despite having a few non dividend stocks, Kefi and Amrq.Though the saas apocalypse took some stocks down 60% and the FTSE drifted 4% in that time.Many of these stocks are now down only 10% YTD recovering most of the lost ground.Peak loses reached a possible $2 trillion.Could the AI crash be as contained?So sell my SMT and PCT and AAT?Could this run for another 12 months or could it all implode when DJT gets a strop after the mid terms. Could this be a bonfire night Explosion?I will seriously consider taking a profit on my 10 spacex and perhaps SMT.In the mean time, I will collect my dividends and instead of investing, I think I will treat all those I love this Christmas.Exact timings are hard to guess, though it never hurts to have a little/lot of cash on the sidelines, apart from when Labour start taxing it in your stocks and shares ISA next April.
Longspur, a connected broker, put out research this morning but had to withdraw it and plead for those of its clients, who had downloaded it to delete it!!!
