TSX:TNT.UN - Post by User
Comment by
giovincoon Oct 28, 2024 12:01pm
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Post# 36285149
RE:CAD REITS SINK AFTER THE 50BP CUT
RE:CAD REITS SINK AFTER THE 50BP CUTPrice expectation theory. Expectation is gone now after the rate cut, first cut 0.25 increased expectations of future cuts so price increased. Now it is all factored in, no more new or change in expectation. Cut is just a cut. It will favor the company's operation.
Now that the market conditions are factored in, the company needs to deliver actual result for the share price to go up. Share price may jump 20% to 50% if they reinstate the dividend, as share prices clearly dropped when they cut it.
Not sure if the current price is high enough for the management to decide a dividend reinstatement, but dragging it on for too long is not good for the share price. Share price will appreciate before the result announcement if expectation for dividend reinstatement is high. i.e. expectation theory lol