What investment is risk-free BP ? I guess the question is where does it fit on the curve ? 7.39% feels to high. Not sure we will get to 5.0% ($3.40) tho.
One good old trucking firm [risk free.?] is paying a net yield of 1.36%.
5% net at $3.40 would still be a good yield.
I guess the question is where does it fit on the curve ? 7.39% feels to high. Not sure we will get to 5.0% ($3.40) tho.
I guess you are saying the market is wrong and undervalues TRA. That's what the TRA board says as well, and so far they have been wrong.
What are the risks? You might lose a lot of your capital chasing these amazing dividends. Ask percy - he knows what I am talking about, and I experienced it as well first hand. Trust me - getting 10 % in dividends and losing in the same timeframe 30% in capital does not feel like a good deal - and this process might continue for some years to come.
Lots of dark clouds at the horizon ... and so far the board was busier increasing their fees than bringing the boat into safe waters.
Market certainly seems to think the risks are high ... but who knows - maybe the market is wrong? Sometimes it is - but more often it is not.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Market certainly seems to think the risks are high ... but who knows - maybe the market is wrong? Sometimes it is - but more often it is not.
No worries with TRA ....safe as
Remember in the short run, the market is like a voting machine--tallying up which firms are popular and unpopular. But in the long run, the market is like a weighing machine--assessing the substance of a company.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
What are the risks? You might lose a lot of your capital chasing these amazing dividends. Ask percy - he knows what I am talking about, and I experienced it as well first hand. Trust me - getting 10 % in dividends and losing in the same timeframe 30% in capital does not feel like a good deal - and this process might continue for some years to come.
Market certainly seems to think the risks are high ... but who knows - maybe the market is wrong? Sometimes it is - but more often it is not.
I am with you BP on the capital loss....I don't like it at all either. But that's happened and to date I've decided not to crystalize the paper loss (23.6%) into a physical one. Hence my musing over where the share price might get to should they continue more or less as they are. Clearly 10% dividend is to high....IF the risks are low. And I believe the shareprice should re-rate higher.
It might take a few cycles of decent results for this to happen tho. Alternatively...maybe the market has it right and the price could drop further once it stops being supported by the Company.
RTM
PS....I was underwater for years with Contact Energy....I see they hit $9.00 today. Now my 3rd biggest holding.
I am with you BP on the capital loss....I don't like it at all either. But that's happened and to date I've decided not to crystalize the paper loss (23.6%) into a physical one. Hence my musing over where the share price might get to should they continue more or less as they are. Clearly 10% dividend is to high....IF the risks are low. And I believe the shareprice should re-rate higher.
It might take a few cycles of decent results for this to happen tho. Alternatively...maybe the market has it right and the price could drop further once it stops being supported by the Company.
RTM
PS....I was underwater for years with Contact Energy....I see they hit $9.00 today. Now my 3rd biggest holding.
Yes should TRA achieve good results then the share price will recover,and should TRA show they have the capacity to continue paying a high, and possibly increasing dividends then $2.75 to $3.25 will be achievable.
The agm on the 18th will hopefully give both a trading and a strategic review update. I would not be surprised to hear they are trading very well.
Originally Posted by RTM
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