RE:Management or me?EA12 wrote: We this is what I was waiting for but I didn't expect such a robust kick in the teeth. I bought a lot of this stock in June of 2016 before the WGL acquisition, thinking it was a good yield stock in the pipeline/utility sector. When WGL was purchased the company and analysts thought of deal being accretive. I considered the investment thesis as being improved. Debt was identified and a schedule of sales and rationalization were presented and for the most part followed (the exception being that the anticipated sales prices could not be achieved in some cases so the spin off of assets was a reasonable alternative). So why are we here to day (50% loss for me). I can only think that some of there earlier assets were not as good as the company believed and the WGL purchase was not as good as the market believes (paid too much). What disturbs me the most on this day is that by eliminating the DRIP the company is indicating that the dividend is at risk. That is the new twist for me as I thought that the company would come out and clearly state we are good and this is why. I have yet to bail but a cut for me is just not acceptable. Tell me ladies and gentlemen what is my future with this company? by the way writing this has not helped me...
This expresses exactly what I'm thinking. How can any of us have faith in management when, yes, they've done much of what they promised, but they were so completely and utterly wrong in their analysis and rationale (i.e. math) doing it?
On top of that, I'm sure many here bought under the "it's a utility and the dividend is safe" to mean that the yield would go back down through share price recovery. Instead, this thing just keeps dropping. If a cut is coming (and my view is that it is), why would I buy WGL over any of the other utilities or, say, ENB, which doesn't have this mountain of problems?
I'm still long, but to say that today's report was a disaster is probably understating it. The one thing that I was hoping for was clarity on the dividend and, possibly, the path forward, but both appear cloudier than ever.