it would be prudent not to distribute dividends at this time. The board of directors will re-evaluate its decision in future quarters. No future dividend declaration is guaranteed and is subject to the Company's board of directors' sole discretion, as detailed in the Company's annual report for the year ended December 31, 2011 on Form 20-F, under "Item 8 - Financial Information - Dividend Policy".
I understand the desire for a dividend I like them to. But this is a prudent action that should instill confidence in the stock and help actually raise SP . True , we will probably loose some who were there for only the dividend . But with a company trying to redefine itself into a more wholeistic communications entity over time . Realistically , this will probably be a mid-teens SP company with a 10-15% div that will be sustainable . Of course I could be totally wrong but that investing .
1. They need to conserve cash to compete. Good idea to suspend dividend while they still have positive cash flow. 2. I have quite a few Dec 2012 $7.5 calls. It is a very personal reason, but I could directly benefit from the suspension of the dividend.