I see this as a positive move in right directionI am an individual shareholder and have seen my CPG portfolio value drastically erroded. I needed old/new/recycled management to deliver on their promises of
1. Cut Capex
2.Cut administrative expenses
3. Use cashflow and money saved from capex and admin expenses to cut down debt
4. Reduce debt by reducing dividend from portion saved. It does not make sense to pay interest on debt and at the same time pay dividend. It will help build shareholder equity.
5. Sale of assests in a disciplined manner (not at fire sale prices) and use 100% to reduce debt
6. Share buyback program from cash flow and savings to increase shareholder value. Currently book value is over $16 and share is trading at 28% of book value. It is like buying a barrel of oil at $3.30 USD against $51 USD. It is a good move in my opinion.
7. Reduce management compensation and pay them in shares.
There are people who are never happy. If company spends money irresponsibly it may not last. Now it will be much stronger than any peers. Short term pain due to seniors depending on dividend income but long term gain. Sometimes drastic medicine needs to be administered to cure the patient. I will wait and watch as stop loss selling, people not happy with dividend cut are selling. Once loose leafs fall, new stronger leafs will emerge.