Anyone following this one at all?
It popped up on my biggest percentage losers screen a few days ago, I checked it out, saw that the drop was a far larger percentage than the percent decrease in their forecasted EPS, saw that they paid a dividend, and waited a couple of days (I figure bad news tankage usually takes 2-3 days to finish), then bought (1/3rd position -- but not likely to increase it unless I get a BIG opportunity) this morning at $9.38.
Biggest plusses: Dividend yield (if it's safe) is 2.1% at my purchase price, company makes a profit. A decent one.
Biggest negatives: Reduced earnings forecast, big debt compared to cash on hand, the dividend was part of my buy motivation (last time I did this was with F, and the dividend was cut in half the next day), typically very low volume, and the PE is still a bit rich for my blood, but not ridiculously so.
I got into this one as a potential non-trading core position to get some dividend income from and as a position I likely won't have to worry about too much.
Last trade at this point, $9.30. Still not a really big dividend yield on a percentage basis and it'd have to come down a lot further than I see possible before the dividend yield alone would be reason to buy it.
Opinions? |
