Regal Partners Ltd V.RPL

RE: No Divy Prediction

[InvestorSuperfan]

I see your point seeingeye, and I realize that the dividend elimination I would like to see occur could go either way: Investor relief that management is doing the right thing to address their debt issue and bring some much needed financial stability to the company, or see yield investors bail out on the news and drive the stock price to much deeper lows. Nonetheless, I think a prudent management team must do the right thing, even if it results in short-term pain. Everyone knows the debt needs to be addressed. Everyone knows changes need to be made. The financial stability of the company is not enhanced if you are paying out a dividend you can't afford. Now, perhaps management has decided that a cut to the May dividend would send the stock plummeting to ridiculous  lows, so it may have been a good strategy to announce the May dividend in conjunction with the Strategic Review revelation to avoid a mass exodus based on a double dose of bad news (strategic review + dividend elimination) to give investors a "cooling off" period to recognize the value of the assets the company owns before they consider heading for the exits upon dividend elimination.