I actually like FNF at current price, but I do wonder is it possible that given the dividend cut we might see a few large institutional owners try to sell FNF out of any income/dividend oriented funds?
Does anyone know enough about the institutional ownership structure to know if that is a concern?
It would create a slightly better buying opportunity.
Company just cut dividend in half--they will definitely initiate a major buyback program so that any possible big sellers will ultmately be a boon to current shareholders as the # of shares outstanding gets increasingly smaller. Another possibility is that management is getting ready to take this private. Add to longs here to enjoy big gains within a year.
The dividend cut will probably spur a number of yield/income oriented funds to get out of their positions before it must show up on their year-end reports. Funds will not want this to show as a holding given the dividend cut and recent price action. Snap back rally today but should be under pressure for the rest of the years.