The company beat on earnings and projected in line for the year. The diff is impairment charge of 31c (non cash and expected. The only news here was dividend cut which based on the yield, street expected a cut. Most buyer of this stock did not buy it for yield but for potential capital appreciation. The goof news is that they states that they believe there will a growth in student enrollment in 2012. I will continue to hold and expect the revenue to pick up in 2012 and the price back to around 20. Company has solid balance sheet and is in sector that does not compete with public sector.
Like the fool that I am, I bought 1700 shares of linc a little over a year ago, when at that time the pr was pumping the stock with quarterly increases in enrollment and revenue.I bought it at 22 bucks a share. I thought at the time it would be a great long term investment.now i see this as heading down below 5.00. they cut the dividend. A lesson learned and a bag holder forever. linc=pos
LINC hasn't moved much after the Earnings Report; evidently, it didn't make much of a favorable impression.
As low as this stock has sunk, it will likely sink further because of the dividend cut. This is too bad because in the past a lot of good publicity in financial articles touted Lincoln as a high-yielding stock worth buying because of the generous dividend.
Hence, in the past the point could've been made: that even if the stock went down, at least an investor could get a great dividend. Well, with a dividend cut, the dividend can't be considered so great anymore.