Q: I am aware you had dropped FSZ from the The recent announcement of the drop in AUM has precipitated quite a drop in share price. My 3 part question is:
1) How safe would you say the dividend is?
2) Can you estimate the payout ratio at this time?
3) Is this the proverbial falling knife, or is there a basis for some share price (are we there?) where a buy is in the order?
Thanks! ... PK
1) How safe would you say the dividend is?
2) Can you estimate the payout ratio at this time?
3) Is this the proverbial falling knife, or is there a basis for some share price (are we there?) where a buy is in the order?
Thanks! ... PK
5i Research Answer:
In the last 12 months, cash flow was $52M and dividends paid were $90M. Frankly we can't believe the dividend has not been cut yet. At a 20% yield, investors certainly do not have any confidence in the dividend. Payout 173% but note this was as of June 30 and results are likely worse now, so the payout is likely even higher. The stock has been a disaster. Assets/sales have fallen for some time, and something needs to be 'fixed' here. We do think it is a takeover target, but we would have said that at $10 as well. It is probably a value trap without something changing or some other catalyst.