GoldMoney Dividends

GadsillaGadsilla Posts: 130 Bronze ✭✭✭
GoldMoney has some pretty solid earnings and generally seem to be financially well off. However, despite that and rising gold prices as well as the CEO buying stocks to boost confidence the GM stock doesn't seem to be catching much momentum.

What sort of effect do you think it would have if GM started paying dividends ? I'd love to hear what you guys would think of that.


  • nienie Posts: 130 Bronze ✭✭✭
    A dividend would be a little early *but* I think a small dividend would be a great idea for the future.
  • GoldmattersGoldmatters Posts: 4,021 Admin
    edited December 2018
    Just posing a theoretical....

    Would anyone want to see gold dividends if GM ever decided to pay a divi?

    Personally I think buybacks add the most value at this point with the stock so undervalued
  • GadsillaGadsilla Posts: 130 Bronze ✭✭✭

    $RGLD $ABX $GDX the Goldmining stocks paying dividends seem to be doing very good and since GM is a bank it seems to have the cash flow for it. Buybacks don't guarantee any long-term growth.

    A gold dividend would be very cool, indeed.
  • GoldmattersGoldmatters Posts: 4,021 Admin
    edited December 2018
    Respectfully, the companies you mentioned are completely different business models than GM. One a gold royalty company, a major gold miner, and an ETF...

    Royal is a multi billion dollar market cap royalty company that has existed for much longer than Goldmoney ( im referring to the new Bitgold\goldmoney entity that went public in 2015)

    Barrick is a huge high cost goldming company

    And GDX is a mishmash of large cap goldminers.

    Goldmoney is also not a bank.

    I do 100% agree buybacks don’t guarentee growth and are only helpful at the margin imo. I’m just saying that it makes more sense to me to buy back shares trading below intrinsic value of the company to shrink the float with cash (not having to borrow as many companies do) then to bleed off those same cash reserves into a small dividend.

    Appreciate the engagment, this is what the community is made for :)

  • GadsillaGadsilla Posts: 130 Bronze ✭✭✭
    I thought GoldMoney was legally a bank ? What is it registered as ?
  • GoldmattersGoldmatters Posts: 4,021 Admin
    Goldmoney is a financial service company
  • GadsillaGadsilla Posts: 130 Bronze ✭✭✭
    Wow, thank you for clearing that up for me :)
    I expected the only way to deal with that many international transfers, including prepaid cards and many other alike services was to be registered as a bank.
  • GoldmattersGoldmatters Posts: 4,021 Admin
    You are welcome :)
  • Midas65Midas65 Posts: 38 Copper ✭✭
    Goldmoney should NOT!!! be paying a dividend. ( I can't emphasize that enough!!!)
    If you want a dividend, buy a utility or bank.
    Goldmoney is in its startup phase and needs to position itself for growth, and that includes having cash for acquisitions and to
    weather storms and to pay top talent in pursuing new ventures.
    Roy was buying back some stock recently, that is a good idea, also adding to its gold holdings.
    I know Roy is looking at mergers/ acquisitions, and that means having precious cash in the bank, not doling it out to shareholders.
    Established companies worth billions, and have hundreds of million in free cash flow and trade on a senior exchange should pay a dividend, not Goldmoney.
  • GadsillaGadsilla Posts: 130 Bronze ✭✭✭
    Dividends does grow a company causing more investor purchase growth. XAU is struggling and GoldMoney is liquid heavy, there aren't enough investors in GoldMoney as I have observed it.

    The steady XAU decline is one of the few issues Goldmoney has as it is already comfortably expanding elsewhere. I'd also say that dividends paid out in gold would be very cool and would potentially catch the attention of many prescious metal investors.
  • BillybetaBillybeta Posts: 47 Copper ✭✭
    no dividend yet but I would def like to see that in a few years. buybacks at this point are best for returns given where the stocks at. hopefully were filling in a bottom here.
  • Midas65Midas65 Posts: 38 Copper ✭✭
    edited December 2018
    Gadsilla, I respect your opinion, buy I passionately disagree. The only reason to own a venture company like Goldmoney is the potential for 3-10 baggers.
    The reason for the decline in share price in the past year is the LACK of positive news flow and disappointments, like Goldmoney China.
    Companies like XAU need positive news flow like a deep sea diver needs oxygen, and we really have not had any in the past year. Speculators buy cheap stocks that have "blue sky potential" (ie. a hook, a story), that is why I was so disappointed about Goldmoney China not working out.
    Having more people buy stock will not grow a company, Goldmoney needs to do a couple of more acquisitions or mergers, and needs to have cash in the bank so they will not need to issue more shares. I am sure Roy has a few ideas up his sleeve.
    NO sophisticated investor buys a $2 stock for its dividend, that is what financials and utilities are for.
    Save the dividend talk for when/if Goldmoney has a market value of $5 billion and has $100 million/ year in sustainable profit.

    Look at the Pot stocks, some worth $5-$10 billion, are they talking about dividends?, NO, because they still do not have a sustainable profit model.
    What the pot stocks did have was 2-3 years of positive news via their own news releases and the press.
    XAU needs to have some news releases where they are announcing things are going to happen, as opposed to not happening, like China and NYSE not going through.

  • nienie Posts: 130 Bronze ✭✭✭
    I thought that Goldmoney will be availalble at NYSE soon. Is this not the case?
  • GadsillaGadsilla Posts: 130 Bronze ✭✭✭
    edited December 2018
    I'm not advocating for implementing a dividend right now, I wanted to hear what people would think of a dividend at some point. I wouldn't be able to make a call when since I'm not sitting on all the inside info.

    My reasoning behind brining it up was since I wanted to hear others opinions.
  • RocketDogRocketDog Posts: 765 Silver ✭✭✭✭
    @nie look for XAUMF, that is Goldmoney.
  • Midas65Midas65 Posts: 38 Copper ✭✭
    Nie, Goldmoney did get approved for a NYSE listing, but Roy was right to delay it because it would add no value right now, plus the added expense.
    Save the listing for when Goldmoney is doing better, and new investors on the NYSE will see an amazing finch growth story with a bunch of positive news releases in the pipeline. I am sure we will see a NYSE listing sooner than later, concurrent with the opening of Goldmoney New York. ...just my theory.
    Remember, the number of publicly traded companies in the US has fallen by almost half in the past 20 years...from around 8300 to 4400....too much regulations and other garbage.

    Gadsilla, you are right, this forum is for exchanging ideas and opinions in a civil way. I hope Goldmoney does one day declare a dividend, because that would mean they are doing really well.😁✌️👍
  • nienie Posts: 130 Bronze ✭✭✭
    Midas65 said:

    Nie, Goldmoney did get approved for a NYSE listing, but Roy was right to delay it because it would add no value right now, plus the added expense.

    Save the listing for when Goldmoney is doing better, and new investors on the NYSE will see an amazing finch growth story with a bunch of positive news releases in the pipeline. I am sure we will see a NYSE listing sooner than later, concurrent with the opening of Goldmoney New York. ...just my theory.

    This is good to know. Thank you.
  • SilvermanSilverman Posts: 9 Tin ✭
    I am a new investor. So far, I have only stacked where can i buy goldmoney stocks?

    I can’t findnthem on Robinhood
  • GoldmattersGoldmatters Posts: 4,021 Admin
    @Silverman Goldmoney trades under XAU in canada XAUMF in the us.
  • RegulatorRegulator Posts: 13 Tin ✭
    I don't think Goldmoney has enough cashflow to justify a consistent dividend. (offering and cutting a dividend every other quarter doesn't make good headlines) I do know GM is building up its staff, which is good.

    The other thing to remember is Goldmoney is in a weird position as a company. It is an innovative tech concept, but it is also involved with gold. Gold is generally a counter trend to tech momentum stocks. which makes GM the ugly duckling of the tech companies. I do own Goldmoney shares and I would love a pop back to 8$/shr over night but I would rather this company to continue to grow organically. (QoQ profits) If Goldmoney could do one thing, I would love if they partnered with some large retails to allow purchases similar to what Mene does. The more the better.
  • GoldmattersGoldmatters Posts: 4,021 Admin
    @Regulator thank you for your thoughts here.

    I agree with you that dividends make no sense at this point in the companies life.

    I also agree and have often thought of the odd position that GM is in as a company. On the one hand, you have the hardcore goldbugs that dont trust anyone or anything and they worry about their vaulted gold (which is insured and audited by a 3rd party) and on the other hand you have the normies that hate gold generally.

    Add on top of that some of the more dogmatic crypto people and you get a pretty volatile mix.

    I can’t remember where it is now but as Roy quoted in one of his early papers from Taylor Swift ...

    Haters going to hate.

    I do think that most of that sentiment goes away pretty quickly the moment we wake up one day and get another 2008 (or worse) and people start scrambling to get their sweaty hands on any gold they can.

    It likely won’t even take that in the long run, just a slow realization that gold is the only way to effectively maintain the value of your labor via savings to accelerate the success of GM.

    It will happen in the same way the famous qoute foretells about bankruptcy.

    “How did you go bankrupt?”

    “Gradually, then suddenly.”

    I see the the future success of gold\goldmoney the same way. Incrementally... then all at once.

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