GREY:WFREF - Post by User
Comment by
99999goldon Dec 01, 2014 4:25pm
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Post# 23182872
RE:Dividend cut?
RE:Dividend cut?sparta05 wrote: Maybe this has been discussed already but im going to post anyway:
-Why hasnt management cut the dividend? the outlook for oil prices in 2015 is weak. Some other companies out there have already slashed the dividends in anticipation of this such as PLT.UN another company i follow which due to the crash had an abnormally high divvy. Would it not be wise to cut the divvy now to stop the bleeding? They can always raise it later when oil recovers to a much nicer premium? (possibly 2016). Any thoughts out there? Why wouldnt they want to cut?
The market and the sell off today guarantees that the div is getting eliminated. They'll pay the next div for december and issue a press release that it'll eliminate it.
I can guarantee you when they do cut the div this bounces up 10% in the euphoria but until then it gets beaten a bit more. I use the word euphoria because that's what it is - short term pleasure/gain and then people wakes up.