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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (26408)	3/27/2007 1:06:38 PM
From: SI Bob	Read Replies (1) \| Respond to of 78705

Are you comfortable that they will not cut the dividend again, and what factors might give you that confidence? No, I don't have that much confidence that the dividend will hold. The loss of people at the top (or at the bottom or the middle in such companies) typically means the loss of at least some of their accounts. I think the return of the founder will stem the outflow of accounts, but I can't quantify it beyond "not as bad as it otherwise would've been". My thinking on this is mostly along the lines that I've already earned one quarter of dividends on it and have another coming up next month, so my downside tolerance is pretty high, and especially that even if the dividend were cut, it could likely still be fairly high.