RE:ALA dividend cut reaction TBACardinal Energy cut its dividend from 3.5 cent/ month to 1 cent a month. These are two different companies. ALA is not in the oil business or much in the gas business they are mostly a utility so their cash flow is much more even than CJ. CJ will be able to increase its dividend once oil reaches a reasonable level (my guess it will won't go back to 3.5 cents a month) When ALA cuts the dividend, it will stay at that level for a long period (they will probably end up around 4%) as their debt is large and will take a long time to pay down. I think ALA's biggest problem will be to keep the scavenger head funds from getting control. This investment has been ugly for me as I was talked into buying the subscription receipts by my former broker at Scotia who blamed their analyst for this boondoggle. They recommended this investment because they made a shizload of money on the transaction while shareholders were left holding the bag.