If the company does not SUSPEND the dividend and plow all that cash flow into a stock buyback to raise the share price to non-dilutive levels, i am spear-heading an investor lawsuit for breach of fiduciary responsibility ...
i am consulting attorneys and have made this warning known to the company ... this management needs to act and restore shareholder value ...
I am a very recent shareholder - I guess to recent, though. However, today AYR made a doji. This combined with the reversal of financials, airline and energy stocks as well as AYR being extremely stretched to the downside could be the bottom.
The market seems to treat AYR essentially as a financials company. We all know how banks were beaten down recently as well.
Suing a company never helps that company. It diverts resources to the lawsuit.
Keep in mind AYRs business model is like a REIT, and that's the template they have chosen. You're advocating for a strategy that is close to a growth strategy. That's not the model this matches... there are plenty of growth stocks out there that give no dividend and instead re-invest the money each quarter into a variety of things. Sometimes that "thing" includes a stock buyback.
There is plenty of down and up left before we're out of the dark part of this. I'd recommend toughing it out or getting out, but not a lawsuit.
What leads you to believe that the stock is diluted? I am looking for actual facts and figures.
An EPS of 1.92 seems reasonable to me.
It seems to me that cutting of the dividend would have a short term effect of bringing down the stock price even more, even if it is for a good reason.
Is your goal for the stock to be a growth stock or a dividend stock? historically it appears to be more oriented towards dividend. It seems unreasonable to me if somebody buys a dividend stock and then wants to start a lawsuit because the stock isn't a growth stock.
While I fully admit I am a novice, I think there is great potential in it taking a middle ground. The stock already took a big hit to the price due in part to a reduction of its dividends.
If I understand their situation correctly now, the new credit deal frees up some of the cash flow tied up by the old deal. While it wouldn't be as much to put towards a buyback as completely getting rid of the dividends, I don't see the necessity in risking another reduction to the pps.
Hell, if they completely get rid of the dividends and the pps goes down as a result, we will probably have other people screaming "lawsuit" for that.