GREY:CRIUF - Post by User
Post by
jbsbillon Jan 16, 2019 4:13pm
191 Views
Post# 29241942
What really happened here was unpleasant
What really happened here was unpleasantBut the reaction is over the top. Specifically, Crius
1. Cut the dividend by 0.12% (from 20.91 cents per quarter to 20.9 cents per quarter).
2. Delayed the payment of the quarterly dividend by several months (Feb, Mar, and April now paid in June).
The effect of the delayed payment can be easily calculated using a discounted present value calculatoin. At 1.25% per month (15% per year - about what the dividend was yesterday), the change in timing reduces the dividend by 3.66% in present value terms. So the impact is about a 3.8% reduction. Yet the stock is down 11.1%.
This appears emotional and overblown, and the shorts are all over it.
Note that I sold 37% of my holding today. And I may sell more tomorrow. But there's a point when all this emotional selling will cause me to buy it back again even lower than where it is now - because this is a 3.8% cut, not something enormous and horrible.