seems too oversold, page-24

Watford, I think we all know by now that you think we should buy the hybrid you hold but the point is HDF is far more liquid if you need to get some funds out and is currently paying a 31% div p/a that is 200% covered by existing cashflow .

I read of large divs at other companies offering large divs but some like GMG are covered by cap raisings which hardly seem sustainable .
The HDF div model is buffered by an additional 100% of the total div amount that is being used this year to prudently reduce debt .
From 28 cents p/a to 12 cents p/a is a massive div reduction but if debt is reduced and the actual excess cashflow is there to payout to shareholders HDF is really a cherry for buyers at these prices . When the economy improves and divs return to higher levels it will be very possible that HDF will be paying ongoing divs equivilent to 50-60% p/a (based on current shareprice) .