If Yahoo can make money from its investment, it won't matter that they paid 1.1 billion for Tumblir. Hopefully Mayer has a plan to ramp up advertising revenue.
While I love dividends as much as anyone, I think that earnings growth will drive the stock price higher even if the dividend stays the same.
Before this last earnings report, I think that people were looking backward at the dividend cut in half and the stock tanking. Now people are looking forward. If earnings continue in this direction, I think that the current dividend is secure.
I'm wondering if The Street has changed their mind. Today they issued a Sell recommendation on Penn West also.
Investors in Facebook are paying a huge price for its earnings. I like the company, but don't think that the stock is a buy.
I think that one of the reasons why ERF is so low, is that dividend cuts breed distrust among the shareholders. If natural gas continues to go up, the dividend will be covered by increasing earnings. Then people will have more confidence that the dividend won't be cut so soon.
If Natural Gas is on an uptrend and shareholders believe that the dividend is secure, the stock will go up. I think that people don't trust ERF to maintain the dividend anymore.
It's nice to have some publicity, but the Street gave ERF a sell rating in their article today. So what else is new?