RE:RE:RE:RE:RE:RE:RE:Pretty harsh but is there more? Mrtkr1 wrote: No one can time top or bottoms. NO BODY. Your entry should be based on your risk tolerance. If $39/40 is too rich then wait. That being said, why would anybody want to be cash in this highly inflationary environment? LIF got killed for one main reason. Investors have been trained to see dividend cuts as businesses going belly up. They dont bother doing due diligence. They exit and ask questions later. others follow. Soon everyone is trying to exit at the same time and panic sets in. First, LIF is a royalty company and the business has low overhead. The business is very healthy financially. Second, the cut is a result of capital conservation that will create efficiencies in the future. Third, Institutions have rules around their investments and some stipulate a certain size of dividend. Obviously those institutions had to exit after the cut. They added to the panic. This is a case of panic. The panic wont go away immediately but it will gradually dissapppear. As it does, the SP will rebound. The P/E of LIF is under 7 so i personally dont mind risking buying in early and adding later.
Good post but this is NOT a dividend cut. Not at all. The dividend is variable and dependant on the price of iron ore. We used to get paid a similar dividend then a final `special`at end of year, Problem was the special dividend is NOT included in the yield brokers show. So they now pay a variable dividend that reflects the trailing yield you recieve.