RE:There is nothing new or original in the playbookBSD, you've got my generational perspective on this. I agree with the notion that this is a transformative move, putting their money where their mouth is, etc., that may pan out fine in the end but for those of us who bought into a widows and orphans stock for income at 50 - 60 bucks
when our age exceeded the sp, it's a kick in the teeth. You want to be able to liquidate your stock if needed, not be a bagholder of some speculative V stock. Yesterday clearly was evidence that the general market expected them to be as good as their word and pay down the debt (can't imagine it was the pause, which surely people knew was a sensible and maybe inevitable decision).
Perhaps this move is evidence that there was no standard route to righting the ship, so I hope "desperation" is not the operative word!
All in all, I think we are in for a long haul to regain our capital because management saying two things on one hand and promptly doing the opposite on the other is something that weighs. Banks are usually pretty harsh on that score, so I'm actually surprised at some of the more generous reviews. Bell: too big to fail?
BSdetector2016 wrote: One only has to look at what AltaGas did to shareholders over a four year period from 2015 to 2019. What exactly did they do?
(1) Over-generous dividend.
(2) DRIP, just to make sure dilution got out of hand when they collapsed share price.
(3) They ran to the US to buy a worn-out Utility (that's the "grow at any cost" blunder).
(4) Forced to sell many high-quality assets to pay for the Utility.
Despite all the recent gushings by analysts, share price has yet to recover to where it was in 2014-2015. Other than some BoD figures, I doubt the new shareholder base includes many holders from the blunder times. BCE is going down the same path. How many BCE shareholders want to wait 10+ years to get back to capital break-even? I bet that Bibic will get a bonus for it.