NAL Energy Corporation T.NAE

dividend cut in 2012?

[RIG500]

NAL Energy: A Dividend Cut in 2012?
https://www.beatingtheindex.com/nal-energy-a-dividend-cut-in-2012/
The scenario makes sense.
I am buying at these levels, long term I think the company will be just fine.

[themangokid]

obviously no one here knows 100% what the company has in store for its dividend in 2012 and beyondThe one thing I want to point out, though, is the author of the article seems to be using what he calls a sustainability ratio of over 140% as his main argument for a dividend cut.  However, he doesn't give us what the sustainability ratio is for nae's peers, for comparison

[LoganCopper1]

"I'd rather see the money generated from production increase, sale ofnon-core, non-producing assets or even increased bank lines than adividend cut."I disagree with your last comment, unless they do it by increasing production. Debt costs the company interest payments, so increasing debt essentially costs us $$ to get the dividend. All of your options are unsustainable in the long

[themangokid]

cutting the dividend by 2 cents is not really going to generate enough cash to accomplish anything significant.  This is why I think any cut to the dividend will also be accompanied by either a non-core asset sale  or a bankline increase.  With borrowing levels forecasted to be cheap for the foreseeable future and the market for oil/gas asset sales being so apparently hot, I dont