RE:RE:RE:RE:RE:RE:RE:RE:EIF: Most insider buying everI actualy generally agree with what you're saying, except in the case of EIF,
"investing cash" and
"losing cash" is an important distinction that a lot of the shorts are just not registering.
It would be more inteligent to acknowledge the above distinction but instead question whether the growth capex they're saying they're spending is actually having any effect. Are revenues increasing or decreasing? Is leverage increasing or decreasing? These are pretty telling indicators one can use to test the theory of if EIF is really spending any growth capex.
Perhaps the reason these indicators aren't brought up is because they don't actually support the short claim.
EddySantana wrote:
A rational investor willing to entertain more risk weighs the short critique vs. company filings and realizes the dividend is potentially in danger down the line if they are actually losing cash. So it's not really common sense to succumb to your greedy short term dividend addiction if the dividend itself is in peril of being cut later, is it?