What is going on with CEL this week??
They just voted to terminate their dividend to stockholders and promptly the stock goes up almost $1.00 in one day. Looks fishy to me.
Something good must be in the works.
Interesting though that the stock traded twice the volume and went up twice as much as today when compared to yesterday. The company reported yesterday morning and the reaction wasn't quite as big.
Markets is sometimes unpredictable, but people make it moving by reacting in different ways.
This reaction should make us think, many big stockholders of CEL are not divvy-catchers ,but people who interpreted this decision as a good decision to save money to improve the company finance to invest in an increasing competitive market.
I think people just look for divvy-stocks should look at REITs: it's also a good moment for REITs (as long as interest rate will be kept at this almost zero level).
The bad part for people like me and you is that without dividend , it will be hard for the stock price to reach my (and perhaps also your) average cost price.
My average price for CEL is $13.93, minus 5-6 dividends I have already got is around $12, but from $7 to $12 is a long and maybe impossible way.
Been playing the tax loss game while keeping the stock. It took several months but I was able to reduce my total cost to about $8.00 per share. Originally bought the stock for the dividend. Dividends are a requirement for most of the stocks I own. Lost out on stocks apple and GOOG because they don't pay a dividend.
Nothing really "fishy" at all . The company appears to be changing it's business model into a more wholeistic communications company . Rather than just a cell company . Look at their issues with PArtner in video. with holding a dividend is a good strategic move with bigger investors it instils confidence and bolsters cash flow . The trouble is if you bought this as strictly a dividend play you are going to be disappointed . I forsee this being a mid teens SP with a 10 -15% div. hope this helps .