This is the second time you have offered this comment with nothing to back it up. If there are "experts" who believe what you have said, why not tell us who they are. Otherwise, cut out what looks to me like magical thinking.
If it is to repurchase its own shares, then yes. If it is to try to make another stupid #$%$ acquisition, then no.
No, it isn't the dividend cut. Scotia Bank's Howard Weil came out with a comment regarding what he sees as a tactical buying opportunity in light of Scotia's upgrade from Sector Perform to Sector Outperform with a price target of $18. Weill advises Shorts to cover their positions. Of course not everybody sees things so rosy. RBC cut its price target from $19 to $16.
The figure had been ballpark $600 million annually but during yesterday's CC, CEO Tilk said that sustaining CAPEX going forward from 2017 will be between $600 million and $800 million. Curious that the figure should have been raised so substantially given that Piccadilly, in a 'care and maintenance' mode, is slated to come it at around $15 million annually. So just when those taking to heart what we have been hearing about all the cost savings from completing the expansion program, along comes an additional $200 million in potential, unexplained CAPEX costs. Just another day in baloney land.
1 percent up, 24 percent to go. Not happening. Share appreciation here depends on positive earnings, revenues and future growth prospects. In POT's case, as we heard yesterday, improvements in those areas will be hard to come by in 2016. Anyway, I am watching and waiting for that 25% jump. I expect to be watching and waiting for a long time.
We are regularly told about the expansion progress. Indeed, it used to be that one could look on the POT web site, pick a mining location and see what the ultimate project would look like and how much money was left to be spend on it. I had noticed some months ago that that portion of the web site had not been updated since March, 2015, and wondered when the updated revisions could be expected. What I learned was that the projects in question--Rocanville and Piccadilly--were now so far along that there really was no point in updating those projects. OK, I could see that. But then that entire feature was eliminated. Today, all there is is something called "Facilities and Investments" which give you no idea about what might be going on at these 2 sites. Then we heard that Piccadilly, which was supposed to have had some accelerated activity, suddenly was put into care and maintenance mode. So much for progress there. So the question now is what is going on at Rocanville these days? We heard recently how much lower operating costs will occur once that expansion is completed but it is anybody's guess when that will be. I know that I won't believe anything until they are in the midst of a production run to increase their Canpotex allocation. Anything else is just blah-blah to me.
I did the same having sold out in the low $20s in November. Unfortunately I bought everything back and then some at $18. Silly me.
Probably because they already knew what was going to happen. Some of the optimists among us figured that yesterday's trading was potentially indicative of a positive surprise today. Well, we know how that turned out.
Lower guidance. Poor Q4 on revenues and earnings. Prospects for 2016 completely unappealing. But, hey, they cut the dividend. Isn't that what everybody wanted so the stock could take off? What a joke. I made the mistake of believing what I was told. Fooled me once...
I had to give you a thumbs down because you spelled "disaster" incorrectly in the headnote and used an excessive amount of exclamation points when only 1 would have sufficed. Other than that, I had no problem with your comment.
Dividend cut to $1.00 per share as per what is now a pretty transparent leak the other day from JPM. CEO Tilk's prior statements regarding support for the former yield can now be seen as total misdirection. Believing a word he says henceforth should be viewed as taking a flyer. No justification offered other than so called desire to maintain a strong balance sheet. I guess that suddenly occurred to him because in December we were told that everything was fine. Remember those charts regarding what it would take for the company to have to reconsider its dividend policy? Turns out they were comic book cartoons.
I think it is just as likely that a bunch of trolls pile in and take a chance that there might be something positive in which case they may make some short term profits. The stock is up about 15 cents a share which isn't really indicative of much of anything other than it isn't dropping today as it has been almost daily for many months. This is definitely not a stock for short term folks and even long term folks like me have to wonder whether there really will be a pot of gold at the end of the rainbow.
The credibility problem the company has now if the dividend is cut is that any future comments regarding the sustainability of whatever level the yield falls to will be viewed as so much piffle given that the CEO only last month said the existing dividend is quite sustainable. I know I for one will not believe anything the guy has to say hereafter on that score given that the shelf life of any such comment will have proven to be quite short.
If there were any credence to the theory, POT could cut the dividend to zero and watch its stock soar. Not.