You ask 'why is the company not stepping in to buy at this level'? SB doesn't buy their own stock. They have secondary offerings on a regular basis in which they sell additional stock at a substantial discount to market. My guess is that there will be such a secondary offering soon at whatever price the market will bear. If that is $2.90 then so be it.
why would they do a secondary offering after just cutting the dividend? That would not benefit anyone....They do not need the cash and they just saved $7.6MM per quarter with the dividend cut...floating more shares would only eat into what they just saved.....They have no liquidity issues....the stock is just taking a pounding because 1) uncertainty over dividend taxes 2) Daiichi's 2013 solvency remaining in question 3) the dividend cut 4) margin buyers selling to cover after the huge drop 5) momentum traders additionally shorting
There's no conceivable way short of a Daiichi or Kawasaki BK that this stock stays under $4 until the New Year
Here's the other thing. Tomorrow it trades ex-dividend. Since the dividend is now 5%, that means it will open down around 1.4% minimum. So don't buy today if you want to buy more. Hit the button tomorrow morning if you wantto double down on this mess. I'm not sure it's such a good idea. My investment in it is down 50%. I don't like this price action today at all. It should be bouncing. The fact that it's not indicates to me there may be bigger problems here than realized.