Disingenious rubbish by HDF Management. If you believe them then they had no inkling a few months ago of any need to reduce distribution from 28 to 12 cents a unit - a whopping 57%.
Oh they only recently determined that they may have to pay a measly $10m back to the banks in July and thus decided to be more prudent with capital. Well 10m equates to less than 20% of the previous annual distribution. To preserve the 10m they needed to cut only 5 cents - and then for only this year.
Instead they have held back a further 20m, allowed the share price to be decimated and brought into the mix a raft of day traders who think it is just terrific to get a 30% yiled on such a "good, quality" stock.
Well good luck to you all - that's the market and rubbish management working to your advantage. For myself and other investors (rather than punters) who thought this was a proper, responsible long term stock to squirrel away in a super fund for retirement and bought at prices over $2.50 for a double digit yield - well we now just have to work more years effectively for nothing.
Yep - bitter and twisted, but the HDF managers have a lot to answer for destoying wealth so quickly on this infrastructure stock.
HDF Price at posting:
36.9¢ Sentiment: None Disclosure: Held
