Alaska Communications Systems Group Inc. Message Board

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  • vickersviscount vickersviscount • Jul 20, 2011 11:45 AM Flag

    A little sanity here?

    Even if rumors are true, and ALSK cut its dividend, say 50%, as of today they would still pay 5.5%!!! Perhaps they do need money to build out their 4G system (as one wag suggested), but they are making a profit, and their cash-flow has increased. As a long term holder (in at $8.90) cutting the dividend might be a prudent thing to do, if it builds the company for future profits. The current price seems to be factoring in "disaster" not just a dividend cut - so in my opinion, WAY oversold.

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    • phantasm08037 phantasm08037 • Jul 20, 2011 1:05 PM Flag

      This is pretty much on the mark. ALSK isn't really paying a dividend since they have no net income. Let's cal it a distribution. A cut for the right reason would be a good thing. Anything to do with Alaska has decent prospects, even better if we get an administration serious about developing home grown natural resources.

      • 1 Reply to phantasm08037
      • wack1nak wack1nak • Jul 20, 2011 1:35 PM Flag

        The company has considerable debt, so they are effectively borrowing to pay the dividend/distribution.

        "Anything to do with Alaska" doesn't necessarily have direct positive effects for ACS. The State and oil company business nearly all goes to GCI. The gas line is essentially dead for now, and tourism is having another off year. The potential economic effects of Pebble would be huge.

 
ALSK
1.83May 22 4:00 PMEDT