Shareholder Who Does Not Want to Profit From Loss
I can’t pretend to understand the morass of economic theory and counter-theory. Perhaps that’s better for seeing things plainly.
Tower Corporation shares have risen in value on the basis of an announced net profit for the previous year (Dominion Post, 29.5.13). The large profit was derived from a one-off sale of assets and the corporation actually made an operating loss for the year, the article says. Nothing is revealed about how the Corporation can ensure an ongoing net profit or even break-even in 2013/14 or beyond.
Shareholders (and I’m one of them, though with a tiny holding) are promised dividends for a year when Tower is actually making an operating loss. That seems ridiculous to me.
I don’t expect a personal reward from the Corporation’s poor operating performance. Nor will I sell my shares, now the share price is artificially up, to reap unreal gains from it.
That might sound a bit anti-capitalist, but that’s how I feel.
Tower Corporation shares have risen in value on the basis of an announced net profit for the previous year (Dominion Post, 29.5.13). The large profit was derived from a one-off sale of assets and the corporation actually made an operating loss for the year, the article says. Nothing is revealed about how the Corporation can ensure an ongoing net profit or even break-even in 2013/14 or beyond.
Shareholders (and I’m one of them, though with a tiny holding) are promised dividends for a year when Tower is actually making an operating loss. That seems ridiculous to me.
I don’t expect a personal reward from the Corporation’s poor operating performance. Nor will I sell my shares, now the share price is artificially up, to reap unreal gains from it.
That might sound a bit anti-capitalist, but that’s how I feel.
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