Sir Royalty Income Fund SIRZF

RE:RE:RE:RE:RE:KEG DISTRIBUTION REDUCTION WILL WEIGH ON SECTOR SENTIMENT

[logicandinertia]

Yeah, with a bunch of small cap institutional managers and some retail running quant-driven portfolios, negative revisions (i.e. earnings estimate changes, dividend cuts, price momentum, etc) don't show up until next day report from services such as CPMS.   This triggers sell programs for those with weakening rankings and vice-versa for strengthening firms on a quant basis.  You would be surprised at the number using these strategies.   May not be massive resulting buying or selling volume, but even 50-100k for the likes of KEG can illustrate new price discovery.  Retail selling follows the price weakness, especially with the backdrop of a yield that has been cut from 4.7% to 3%.  

The lag typically gives the tactical trader a few hours in most cases to take profits and wait for the dust to settle before re-engaging lower in the future if they so desire.   Even if you are buy and hold, a big dividend cut or earnings miss on a stock that has ralled a lot (KEG - almost 75% in a little over 4 months) should put you on alert...