IBI Group Inc T.IBG.DB.E

RE: Removing the Dividend is a GOOD thing

[tesh]

Unfortunately I think you are missing the main point - they have been misrepresenting (intentionally or negligently) their real normalised cash flow for a number of quarters now. The so-called one time writeoffs of WIP and receivables are probably not in fact "one time writeoffs" but actually overstatement of revenues if they had been recognized when they should have been in 2012- i.e. their revenues, EBITDA and cash flow were overstated for 2012 by over $15 million.  Their 2012 cash flow including the writeoffs is their normalised cash flow. Why else would they be suspending dividends at this point in time - we have been led to believe that their actual payout ratio is approx 50% if these items were one time. Well they aren't and their normalised cash flow is the lower number and  the resulting POR is unsustainbly high. Why else would they be eliminating their dividends?  I know that I sound like a broken record in this case and I hate to maybe be right in my conclusions but this company has serious issues and management's guidance is extremely suspect. All bets are off. No one really knows what the numbers are - however suspending the dividends certainly gives one some serious clues that they are not good.  Further, to be bringing up the recession of 2008 at this time is laughable and all I can say is that anyone taking their spin seriously (particularly after their misleading guidance) is having their objectivity significantly affected by the unrealized loss they have now incurred by continuing to have held their investment in IBI.