--- In advancedoptionstrategies@yahoogroups.com, "rvdidit"
<rvdidit@...> wrote:
>
>
> Many stocks that once paid a 10 to 17% dividend now are paying 20
to 35%
> because of the crash.
> Some people say right away that tells them that the dividend will be
> lowered or suspended......
>
> I just cant believe for a second that after all the money these big
> boys have taken from us already, that they would f*ck people over
that
> way as well, or even be allowed to. People who paid full price for
> those stocks are depending on the dividend to live off of. If they
cut
> those dividends, and the people have to sell the stock at a much
lower
> price, then they are essentially ripped off.
>
> Any other comments?
>
> I'm tempted to buy some, but not if they are going to cut the
dividend.
> Do you think it will really happen? I had one happen on AFN, but
that
> dividend is 100% or so now.
>
> RV
>


I agree with you about changing dividend policies. It is not
good for a companies reputation. Frequent or arbitrary changes in the
capital structure or dividend policies can cause negative effects on
cost of capital. Ratings companies could lower the rating on the
companies because of increased volatility in the present value of the
future cash flows. Long term customers who own the stock and use the
dividend to finance their purchases will stop buying or trim back
orders. Now is the time for companies to focus on core products,
supply chains, distribution channels etc. not dividend policies,
layoffs and exec pay.
It is so sad to see all these global businesses going under. What
ever happened to simple supply and demand pricing? When you create an
a environment of seemingly tight supply and high demand you get nice
and fat until reality sets in and a child chants LIAR LIAR PANTS ON
FIRE!

Thats my two cents. Plenty more where that came from and its cheap.
Realistic pricing and fair play,

EF


ps. There are some bank bonds maturing in 6 to 9 months with 277% YTM
Will the interest and principle be paid?