RE:Sit Back and Stop WorryingSukhi...good points although I don't agree with all of them..
Many times in the past when a company that needs to cut its dividend finally does so, the market breathes a sigh of relief and the SP might dip on the announcement but then recovers and actually goes up. As I mentioned in an earlier post, the longer a company waits to do what it needs to do like cutting the dividend, the greater the decline in the SP as it necomes a target for shorts and general market pessimism. So your point about this is well taken.
In terms of your last point, if a company is in a declining indusrtry or facing new systematic competition or a new technology then it is wise to take your lumps and sell as opposed to simply holding on and eventually losing even more money. A simple example of this theme is to look at the companies comprising the DJIA. Right now out of the 30 stocks in the DJIA, only one company was in the original DJ - the other 29 have been replaced and many of them don't even exist now.