The company raised needed money by selling 11.5 million shares at 41. Combine the dilution of stock with the dividend cut and you have a company that will do very little for a year or two. It seems that the infrastructure "surge" has not developed and the huge current debt probably means very reduced spending on roads and bridges. The Price to Earnings ratio of 48.4 is very poor.Sterne Agee rates it as a SELL and Morningstar sees "weakness" but does not rate the company.
You are correct. The PE ratio is outrageous and the market will adjust the stock accordingly. I am in the San Francisco area. The governor has just taken all and I repeat all the local gas tax dollars that would potentially go to road building to help offset the deficit at about 1 billion per year this and next year. They also will like our smart analysts have already said use and infrastructure inflow for "other" areas. This state is in very bad shape and will be so for years. I work for a Berkshire Hathaway company and he has told us that the economy will continue to spiral down for another 2 years or so though not as bad as the past. Florida is similar. The reevaluation of the FRK "goodwill" will gobble their feeble attempt to raise money. This is a good industry to get out of now whether employed there or a stock holder. I told all when I was still employed there to get ready for no 401k match, no bonuses, worthless stock options etc. etc. for years to come. Unfortunately, the ones still left can't get out of the stands and into the game and will just sit with their mouth open for 5-10 years and then wonder why their retirement sucks. Wow people are strange and is Birmingham really that great? Try a vacation out of the state and you might be amazed.