WOW just amazing please double check your statement...
"ELNK didnt depreciate in PPS after div cut" Immediate 5% drop... and only because they announced a acquisition, it didn't go lower.
AA what a lie.. How did you even think of this one? DIVIDEND cut March 15 trimmed pps 10% same day... http://www.marketwatch.com/story/alcoa-shares-fall-sharply-after-dividend
NWL GUESS WHAT DIVIDEND CUT AND PPS LOST 10% good call on that one as well... another flat out lie
OK now for the last one I really had to waste some time digging this one up for you. FEB 1, 2003 GT slashes dividend completely and not to my surprise the stock went down an immediate 25%
to its 100 year low.. Great example there.
Some of these stocks did survive, but the point of this is to show you that they survived after bottoming after a dividend cut.. So why buy before the cut?
Never said it wasn't bad, but if they hit targets this coming earnings report and there are no more goodwill writeoffs it may not look as bad as the price reflects.
As for the fact the stock fell so far, that doesn't mean as much to me as what they are doing and the chances of it turning up for the long haul. In fact, I often look for stocks that have fallen like that as candidates for turnaround plays.
As for the reasons for the slide they are obvious, things like a downturn in the economy hitting margins, competition from WMT and overpaying for Albertsons which saddled it with debt.
The question is whether they have been doing what is needed to turn the thing around and deal with those issues.
Operationally they are profitable, and despite all these headwinds they have managed to stay cash flow positive despite them, not bad, plus they have been able to agressively pay down debt and cover the costs of their expansion of their sav a lot brand with operational cash flow. That the stock price may not reflect this may be an indication that it is currently undervalued. As far as the slide indicating risk here, obviously there is risk here.
you know everytime you use the loyalty card, Albertson make money off the 3rd party company that use the loyalty shopper info. So for discount you are allowing Albertson to use your shopping info with 3rd company. So they could be making money off it even if you think you got a great discount.
If these guys did cut their divvy the stock might take a hit, but I doubt they will and if they do and it does it is stupid.
They are cash flow positive, not only paying down debt aggresively, but expanding what they see as income rich stores in their sav a lot brand, whats not to like?
They paid too much for Albertsons, heck that is a dolt Q, $12B, duh, but my look is like it is less than that in debt on the books now, and cash flow is paying it off.
Hey, $12B net of debt may have been alot to pay for Albersons, butn that is one dang good store I will always go back to until, and if, these guys muck it up too much.
LA ain't the West, man, it is a freaking warthole on much of us. they can close shop there and the whole of freaking ponzifornia for all I care, and I might buy
more stock in this dog.
There are plenty of companies that have cut divies and rallied on the news, but this one doesn't need to.
Why would they anyway?
They are looking at, assuming they loaded in the charges as I at least read it, a fair quarter, and if they hit the shorts may just get rolled over and go away.