Aeorema Communications Share Discussion Threads

[ramas] 04/3/2016 14:34

Clearly all your money in AEO is a bad strategy but within a balanced portfolio maybe medium/ high risk dividend play plus potential growth you cannot go wrong. I think there is some protection when it comes to the fear of clients cancelling. Truth is there is a tendency for customers to cycle their media suppliers to stay fresh within a finite market capacity. What this means - when a customer is lost there is a good chance another is waiting in the wings to try you out. Of course not in a perfect Manner but there is a dampening effect wrt revenue ... As usual time will tell IMO dyor

[clocktower] 04/3/2016 10:50

Agreed ramas but confidence can sap away if clients fail to renew contracts and new ones become harder to seal. Bear in mind that paying this dividend was a sure fire way of improving the share price and collecting around £100k for themselves (yes deserved) but how are they going to grow the company? Have they had their heyday?
Is this just going to tick tock along?

Have they come to the conclusion that the business cannot be expanded, so have no use for the amount of cash sitting in the vaults so to speak. Why pay this dividend at this time and out of the blue? Could they not have done this at the interims about a month back? So why now? Was it just done on a whim?

To good to be true almost is it not? :-)

[tiswas] 04/3/2016 10:03

Spot on ramas.

They have not magic'd 3p out of thin air, it was already there and ours as shareholders. The share price will move up and down to reflect who has actually got it of course but confidence in their ability to keep generating cash is what it is all about.

Maybe we wont get back to the seventies any time soon (I cannot believe I sold a stack at nearly 80p in April 14) but 3-5p pa on my current holding will do just fine!

[ramas] 04/3/2016 08:59

CT I think there is a key difference with this special dividend and that is it conveys confidence for the future. Given there have been 3 profitable with dividend years past is the suppressed price must be down to the classic earnings visibility question ....AEO might not be able to communicate this accurately BUT they can demonstrate a level of confidence in this case via the capital distribution. I look forward to further updates in h2

[old thumper] 04/3/2016 04:24

hxxp://www.financial-market-news.com/aeorema-communications-plc-aeo-declares-dividend-of-gbx-3/915981/

A bit of info

CT: I love your free use of the "Tank again" term, I guess yesterday's "Rocket" term would had been appropriate.

Oh well back to spending my divi I guess, ho hum!

[mark1000] 03/3/2016 18:59

Explains the timing of the recent RNS with shares being transferred to the CEO I did say on post 3665 was there something behind this we now know there was. I see this as a vote of confidence and that the 3p normal dividend will be as a minimum maintained.

[clocktower] 03/3/2016 16:30

To good to be true OT, what is the catch? If the stock was valued at around 28p before this news and bearing in mind where it is now (much lower than expected) will it tank again after 10th March? Take the 3p out now and we are back at base with the company possibly in a weaker position cash wise.

Still never look a gift horse in the mouth. :-)

[old thumper] 03/3/2016 16:13

The chart above show's there's a straight line drop from Oct15 (and even further back), break the current share price and we're off again banging our heads on 50p and that would only make a yearly divi of 12%, stupid money!

[pj 1] 03/3/2016 15:14

edit, no point being confrontational. as always DYOR

[boffster] 03/3/2016 14:56

Agree with Ramas - this is a great vote of confidence. The board would not pay this out if there were concerns about the company's future. Also the implication being that we can expect similar in October as I doubt a special dividend would be paid at the expense of the ordinary dividend.

[clocktower] 03/3/2016 09:28

Only 34k so far but share price up almost 19% Wow - 50p coming once again maybe. OT, I guess the 5k is seller is a bit disappointed now after all.

[ramas] 03/3/2016 09:19

Oops for CT read OT ... It's still early

[michaelmouse] 03/3/2016 09:15

clocktower - Nice to see you see the funny side too. I wish you no ill will. Good luck.

[clocktower] 03/3/2016 09:04

LOL - michaelmouse - nice to see you have a sense of humour after all.Good Luck.

[ramas] 03/3/2016 09:03

Some say others do .... AEO is in the latter category.

[wskill] 03/3/2016 09:00

Well done to management I say excellent news an excellent way to return cash even better all my AEO shares are in my ISA.
No way i will be selling any with this excellent divi track record over the past few years.

[ramas] 03/3/2016 08:58

I'm sure CT is fine ... I think CT you are on a free carry plus now ... I think I need another 4p of dividends to get to that hallowed ground.

[michaelmouse] 03/3/2016 08:47

ramas you could take Clocktower on a date night perhaps? Poor chap probably needs some light relief. ;)

[ramas] 03/3/2016 08:41

Just seen this announcement .... Excellent news and for me this is a statement of confidence ... Per CT the war chest will still be relatively huge post divi of circa 10p per share. It also is a good indicator that all earnings will continue to be paid out via dividends ... So even if this year is average that means the potential for another 3-4p at year end. History suggests AEO will still remain unloved , although with DS taking an interest maybe we will see some more positivity. I'll go back in my cave now and figure out what to spend the money on ....

[old thumper] 03/3/2016 08:33

PJ1, If I was younger I'd re-invest but you can't take it with you.

[pj 1] 03/3/2016 08:24

Enjoy OT. I guess with all the divi's you have received you must be almost in this risk free anyway ?(assuming you did not re-invest it)

[old thumper] 03/3/2016 08:20

CT - Well he's got a golden opportunity to sell another 5000 today.

Still I'm off to spend some money.

[clocktower] 03/3/2016 08:13

OT - I doubt that because after the initial excitement the seller may well have chosen the right path if they were looking for growth in the share price rather than dividends which attract tax depending where you are resident. After the special dividend date 10.03.16 you might see the share price slump, as it did before.

Still it is a huge dividend over the past two years and a great result in all. Not many buying so far, maybe the bid price is better than the dividend in the longer term.

[old thumper] 03/3/2016 08:06

PJ1, Mr 5000 constant seller must be cheesed off today.

[pj 1] 03/3/2016 08:03

Yes well done Boys!

Begs questions over that price action yesterday.