...cut to $.12 from $.20. Gee, what an informative press release. Couldn't the company say ANYTHING at all to explain the decision? This can only cause fear and uncertainty to come to the fore. Most importantly, what does this say about earnings? Does this mean that the company sees business deteriorating in the near or far future? Silence is eloquent.
The news is not really bad. Even with Deleware's hands in DDE's pockets, the company earned $.40 from continuing operations. With the stock at $3.50 this is only a p/e of 8.75. The "new" $.12 dividend yields 3.4% in a low-interest rate environment. With current assets/current liabilities of 8/1, I don't see why the company had to cut the dividend, but what do I know as I labor in the obscurity of my Brooklyn basement. The table games should almost certainly allow the company to make more money from each location but again, who knows, as NYC OTB is the only bookie I know that manages to lose money. The timing of the releases upset me last night. The only release then was a terse announcement about the dividend cut. Why couldn't this wait until the earning release the very next morning? And how about a little detail on WHY. Well, this is life in small cap land. Patience is a virtue here. Good luck to all. H.
"I'm from the government and I'm here to help you." It appears that increased gaming taxes and fees cost DDE $.19 per share this year. The State of Deleware grabbed your dividend income. However, it does appear that table games will be coming. Hey, the State of Deleware is certainly eyeballing the extra money they can grab from this. So, at least they're on the same page as DDE here. The bet at this point is that Deleware will let us keep a few extra bucks. Let's hope that DDE has as much good luck as their namesake General Dwight D. Eisenhower had with WWII.