RE:Why did it go up 52 cents today?Oh dear. Firstly, the results were not horrible - not stellar, by any means - and have bought management some more time. This is not a cannabis stock - we are not suddenly going to see a massive crater or a massive uptick in traffic in this mature industry.
Secondly, there wil NOT be a MASSIVE dividend cut. They target pretty much 100% of earnings for dividends, so any reduction would need to be relatively modest to get back to that level. It's the share price fall which is making the yield look out of whack, but it's not because of a massive decline in EPS. In any event, they have 75% of their reserve left, and they are telling us that this reserve normally gets added to in the fourth quarter.
For those that are sitting on massive capital losses, there is an urgency to get some very positive sales numbers in the door to get earnings multiples up. For those enjoying a very fat dividend, there is not the same urgency.
Having said that, if we can get back up to circa $12, I would much rather have my money in Jack Astor's and co!