from conference call Some positive points:
- they think they can accelerate the cost savings program of recent years, so more than $4-6 million they think is achievable. The TD analyst seemed surprised by how much they aim to cut.
- debt reduction will be "substantial"...basically they will start using the $8 million saved on the dividend reduction to reduce the bank line. There is no debt maturities in 2013. Also, capex is still modest at only $2 million a year.
- they reiterated the target range of 40-60% payout of free cash flow in dividend. That implies about 60c in free cash flow per share this year.
Overall, I am feeling much better about this stock. Even after the jump yesterday, the dividend yield is 14% and the stock is only trading at 3.5x free cash flow. I haven't seen any updated recommendation from TD (the only analyst folowing this), but I think he must be tempted to revise it to a BUY rating.