Twin Butte Energy Ltd TBTEF

RE:RE- UNDERPRICED

[ocean112]

my two cents why they wont cut the dividend - at $1.00 - they yield 12%.  If they cut the dividend to say $0.09 - the yield goes to 9% at $1.00 - lower or on par with what higher quality names like Surge or Cresent point are paying.  

So they have incentive to keep the yield higher given thier risk premium relative to other dividend paying names.  Also - cutting the dividend cut limits upside (at $1.20 with a dividend cut to $0.09 - yield goes to 7.5% - hardly worth holding given other names).  I prefer a dividend cut as well - but they are likely sticking to thier strategy to be a safer - high yield play - and have plenty of time to ride this out for a price recovery.