chuck16If YLO only cuts their dividend in half, it could trade in the $3 range, as the market will continue to demand a high yield on this stock. There are no real assets in excess of their huge debt load, so there is nothing to base the share price on but the yield. And the continued uncertainties about their margins and proiftability is the reason the market will demand that high yield, in order to mitigate that risk.
Even though some keep harping on the "assurance" by management that the dividend won't be cut, remember that they are already bumping up against the upper limit of the payout ratio. Any deterioration in their profitability will be just the excuse they need to cut the dividend. They can use the excuse that 'circumstances have changed and they must adjust to those circumstances'. I have seen it done many, many times.
You can believe some trash like BioBully who has just bought in, and will say anything to support his position, or listen to someone who is honest. I have a bit of skin in the game, so have no reason to bash the stock. I realise honesty is a very rare commodity on these boards, but one has to try.