RE:RE:RE:RE:RE:Will they cut the dividend?McRambus wrote: YassineNoBS wrote: If you don't hold it why are you wasting your time? Don't you know time is money? Anyways I will answer your concern in good faith. If they cut the dividend it will go towards paying down debt and/or buyback some more shares and both will be positives for the long run. Investors think a few years down the road not a few quarters or a few days to squeeze out the weak hands.
You are seriosuly delusional. You have been here since $7 sprouting the same shorts are responsible nonsense. You are going to lose 95% of your money.
Did you bother to read the press release? They are NOT going to renew the buyback. What buyback are you talking about? They have DEFERRED the dividend. The dividend is a paltry $11 million/quarter. Yet they can't gurantee such a tiny amount. It will make ZERO difference to their billion in debt, They are drawing almost their full revolver. Read between the lines. Their covenants will not allow a dividend to be paid. This is not about short sellers. This sector is in trouble with their thre decades old regulations. The assets here are worth 10x time market cap but they are not allowed to sell them? Crazy,,
McRambus is McRight about the buyback and dividend.
From the CJR.B press release dated January 13, 2023: Outlook
Given the continuing uncertain economic conditions, risks and uncertainties described above and in the 2022 MD&A, the Company currently expects to continue to be impacted by industry trends in advertising spending in media.
At the current time, the Company also expects to see some sequential improvement in the calendar year in the rate of decline in television advertising revenue given macroeconomic and industry factors appear to be stabilizing. However, the Company expects that the softness in Television advertising revenue discussed in the prior quarter will continue to persist to some degree in fiscal 2023.
While the Company’s financial priorities remain unchanged, in light of the foregoing as well as considering the continuing low visibility into the macroeconomic environment, in addition to continuing to take rigorous cost reduction measures, the Company believes it is prudent to conserve cash out of an abundance of caution.
As such, the Company will not renew its share buyback program when it expires on January 16, 2023.
In addition, consistent with this approach, the Company’s Board of Directors has decided to defer its decision on the declaration of the March dividend at this time. The outside date for a decision on the declaration of a March dividend is March 15, 2023. The Company will also use this opportunity to consider the alignment of dividend declaration and payment dates. The Company understands the importance of the dividend to its shareholders and remains committed to its long-term dividend philosophy.
After years of dividend increases, the dividend was severely cut in 2018 from $1.14 per year ($0.095 per month) to $0.24 per year ($0.06 per quarter).
Now, another cut may be imminent.
The market is signalling it expects a dividend cut as Friday's close of $1.91 implies a dividend yield of 12.57%. Once the yield of a stock hits 9% or higher without a general market collapse like was seen in the COVID crash of 2020, the market is saying it thinks the dividend is not sustainable at current levels.