Well, I have done DD and that is why I have held off from buying JE. The high divy they paid looked awfully tempting, but I had a feeling it wasn't going to hold up.There is a lot of truth to the old saying, if it looks too good to be true.... Best of luck to ya.
In your DD, how do you explain the Chairman of the Board having around 6 million shares. If the business model was all a sham she would have been selling shares hand over fist when it was in the 14-15 dollar range and would be dumping like crazy now if the jig is up. But apparently she hasn't sold any so either she still has confidence in the company or she is insane.
i understand skepticism, but this is wall street - everyone should be skeptical all the time!! that being said, i'm not quite sure what is "too good to be true" about JE. after reading PRs, earnings reports, and recent filings, i i believe the company is buying back its debt and with the intent of ultimately reducing the OS. this means less shares available to investors and reduces the cost of paying out the dividend. that being said, i believe temporarily reducing the dividend is a great move by the company to finance the repaying of its debt. less debt means stronger financials. maybe i'm missing something, but i'm not seeing any signs of weakness other than shareholders overreacting...
This is a reply to shiftsuper. (I tried responding directly to your post, but for some reason Yahoo has blocked me from posting to you)
Let me just say for the record that I'm not a basher. I have no skin in this stock. The reason my posts are peppered with skepticism is because I have been burned by stocks like JE before(CEP and CEG) so I guess you could say I am trying to warn others to the pitfalls of these high flyers. The lure of a high dividend is what draws most investors to these type of stocks, but the sad reality is most of them can't sustain the high divy. I've been playing the REIT sector for the last couple of years and have seen my stocks (ARR,RSO,CIM) continue to cut their divy every couple of months. The bottom line is these stocks are a gamble.
I suspect JE will pay the .07 cent divy for a couple of months then I think they will cut it again. Look at what has happened to AT stock. They cut their divy by 65% and yet that stock still continues to fall. (AT stock goes ex divy tomorrow)
You are here for a reason...... say whatever you want.
The divy has been cut. The question is "will it remain as is"?
The cut was not made under duress.
The divvy cut has a purpose...
I believe it will remain at .07 and then in a few years it will be raised.