I'm well aware of the challenging times in telco, but at this price I could not resist to buy some...
just wanted to alert that the divvie going forward will be less than in the past. the fact that their special was the same as their normal is confusing, probably intentionlly so.
Great article on it in last week's Barrons about the pressure on management from investors and analysts to "do something" with the $6 bil. in cash!
Hopefully they are smart enough and strong enough to tell the analysts and money managers to stick it.
I've been sticking my toe in there, pulling it in an out a bit actually.
Value line shows the dividend being reduced, and I am pretty sure they have announced it would be, but can't put my finger on the right release.
As for the pressure or possiblities of what to do with the 6 billion in cash on a company currently valued at less than 8 billion (but with a few billion in debt I believe)... I'd hope that, after this exodus purchase they feel like they've done enough, and spend money refining their current operations gradually, o a level thats near term cash flow positive, and perhaps use at least the interest on the cash to buy in stock as long as it stays below 10$ or something.
I like it. What are the chances the divvie stays?
Even if halved, it's still close to 10%.
they just paid a large special dividend. better take a closer look.
A clue: since their privatisation in 1981 they have never missed to pay one...