Post
Topic
Board Securities
Re: ASICMINER: Entering the Future of ASIC Mining by Inventing It
by
Rannasha
on 22/08/2013, 15:04:04 UTC
ANYONE concerned with how much money the company is PAYING in dividends is not thinking properly.

The amount the company PAYS in dividends is irrelevant to the value of the company. The relevant values are how much the company EARNS, and how the company is run/reinvests in itself.

(Unless you don't trust Friedcat, in which case you should not be investing at all).

Earnings aren't much lower than normal. All of us should be hoping that Friedcat will reinvest the lion's share of the capital in getting to the better chips faster. Because that is how the company will thrive long term. Dividends are just a perk and a distraction for any serious long term investor.

Exactly. I think most shareholders are more than willing to sacrifice part of their divs for R&D, but we kneed to know when it's happening or people just start assuming that a low div. equals Asicminer going down in flames. On the bright side though, it gives us a chance to buy up some cheap shares!

I think this is an issue with weekly dividends. Using part of the revenue for R&D costs or some non-recurring expense is immediately reflected in the dividends. Non-BTC companies often pay dividends yearly, or even less frequently. But with the volatility of the BTC market, anything less frequent than weekly dividends seems to be frowned upon. And while frequent dividends are demanded by most, many don't seem to accept the consequence of high variation in dividends that comes with it.

If you want your dividends to be constant and/or predictable, buy some bonds or mining contracts, rather than actual stocks.