PDA

View Full Version : "..we enjoy paying ourselves and our owners well" closed thread



Vulgarsty
25-09-2015, 23:17
Wintermute closed the thread so killed my right of reply, but I did want to say that yes, of course I realise that line comes from the previous report - however the pay freeze comes from this one and that is the salient point I am drawing attention to. They really do need to be juxtaposed just to expose the corporate "failed state" that is GW.

Feel free to close the thread now......

Mawduce
28-09-2015, 02:04
yea, that should scare an investor. how can they do that and put up a pay freeze? would paying their people more cause them to miss dividends?

Katastrophe
28-09-2015, 14:21
I believe their payment of dividends was at the expense of employees and other positive investments. However, they likely see a failure to pay dividends as possibly resulting in their share price plummeting so they won't chance it. They're paying dividends that exceed their earnings per share which is bad business and likely means their share price is unsustainable and artificially inflated. Plus Kirby needs his bonus (shares and dividends payment) each year.

Gorsameth
28-09-2015, 14:45
They have previously borrowed money to pay dividends so yes. that is entirely correct.

Svetgar
29-09-2015, 18:11
I can't believe you like money too. We should hang out.

Vulgarsty
29-09-2015, 21:29
They have previously borrowed money to pay dividends so yes. that is entirely correct.

The pay freeze whilst paying dividends has a moral dimension, however the borrowing to pay dividends is a purely economic calculation - it does, to the layman seem to sit ill with "we intend making minis forever", more like "we intend to asset strip the company until it folds"

Jan Luthman, a manager of Liontrust's "Macro" fund range, agreed: "Paying dividends from debt is something I'd normally associate with deep recession – housebuilders have done this at times, for example," he said. "When it happens, it rings alarm bells.

"Companies that have to borrow to pay dividends are self-cannibalising."

ebbwar
30-09-2015, 00:07
I wonder if profits for GW fall again will they borrow once more to pay dividends...?

Vulgarsty
01-10-2015, 07:04
Well they will be this year. mwahahahaha!