Incitec Pivot Ltd T.IPL

RE:RE:Thoughts on IPL

[GregC24]

clamlinguine wrote:

Fantome wrote: As some here have mentioned...

The previous IPL PR did not announce a dividend cut....at the time I expressed questions about this.  Now a short while later they announce a substantial dividend cut.

While IMO..the dividend cut was necessary..it raises the issue of two important facts or views by the market..and more imprortantly...The Street..

1..if the dividend was in danger...why didn;t they annouce it in the last PR..the SP rallied on the annoucement in the expectation that they would find way not to cut the dividend.  further the previous PR left the impression that a storage deal was immininet..today..it is not

2..all this leads to a question of credibility and honesty by mgt...they hung the long term shareholders out to dry

In accordance with my investment disclipline and experience working on The Street for many decades..I sold today...

One of the key decision factors for for is.."Do I trust mgt?"...the answer here is clearly NO!!!

As some posters here have mentioned...nothing of substance has changed from 11 days ago...the only conclusion that can be drawn is that ...mgt has a poor communications strategy and more inportantly they cannot be trusted...

Well they did take the pay cuts to punish themselves for screwing up the last news release.

How did they screw it up.  They said there would be an update on the sale process.  They did not say a sale would happen.  The analysts saw that if the sale did not happen a dividend cut could happen.  They got the message.  If you didn't that isn't managements fault.

Scotia from March 19:
Latest Research (March 19, 2020):
OUR TAKE: Neutral. Inter Pipeline announced that it will cut its 2020 capital budget by 5%-10%. We think the company is waiting to understand the outcome of the Bulk Liquid Storage sales process before making any larger changes to the capital program and funding plan. We view the cut as minor. Inter Pipeline expects to provide a market update on the status of the sales process within the next few weeks. If the Storage business is not sold, there could be a dividend cut.