RE:Stop worrying about dividend, start worrying about survivalBut let me add one more thing about the dividend. Soon I doubt VET will have any say on whether or not it cuts the dividend. VET’s dividend is unsustainable so it essentially must borrow money to pay the dividend. With a deteriorating balance sheet and horrible business environment how much longer do you think a lender will continue to lend VET money to pay such a dividend? The answer is obvious.
JMHO. GLTA.
WheresMeGold wrote: Anyone who has worked in industry/manufacturing or been an investor for any real amount of time has seen companies in similar situations go under. It happens all the time and it can happen fast.
When you consider VET’s deteriorating balance sheet, decreasing capex spending, aging assets, and worsening business environment making its assets worth even less, whether or not the dividend payout is cut is probably the least of shareholders concerns. The stock price is starting to reflect the real possibility VET is no longer a going concern within the next couple of years.
The market is sometimes wrong but is often right. And as I said, a company shifting from being a going concern to not being one can happen fast. Be careful VET investors.
JMHO. GLTA.