Because the price/sales is down to 0.07 and there are only 75 million shares out. The cost of the 10 cent dividend is 7.5 million a quarter - that is peanuts for a company with sales north of 5 billion a year. They should be able to slug their way through this with the cash flow from military side, fire truck side, and garbage hauler side.
I am holding some of this stock, but I do wonder if they want to go back 3 years when their long term debt was a couple of million, then 2 years ago went to $3 Billion to finance purchase of other companies. Check out the balance sheet on yahoo - Long Term Debt.
Who knows - but they have 2 billion in military ciontracts and a chance at some more stuff for mobile armour protected vehicles suitable for Afganistan. God knows the taliban are going to try to damage as many of those trucks as they can.
All very true, but they still need to get that debt in order. I highly doubt their lendors are going to give them a break on their agreements and allow them to maintain their dividend. With that said, once and if that gets taken care of, they should reinstate the dividend. Even at these prices, their is high risk, but high reward as well. Risk to me for 2009 outweighs the reward.