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  1. 57 Posts.
    As for the dividend announcement tomorrow, here are some reasons why I think they will maintain what they announced on 19/02/2009:

    -their profit guidance is around last year's profit levels so that is one reason why they would keep their dividend at that level this year
    -they have already gave investors some hope that the dividend will remain the same as last year in their announcement on 19/02/2009 by saying that it is "anticipated" to be the same. If they change their mind, investors will lose further confidance in the company and it could lead to a very substantial fall in SP by institutional investors who do not appreciate non-disclosure
    -the directors hold substantial amounts of SSM shares (most with over 1m shares) and as such, they will probably not want to see their share portfolio crumble. Also, I am sure they would be happy with getting a dividend themselves as shareholders
    -by not giving a dividend, the share price may fall making it not desirable IF they want to ever get further funding by issuing more shares.
    -finally, I think they probably would prefer not to make any more "surprises"
    -if you do decide to decrease it, it probably wont be by much for the above reasons.

    Anyhow, who knows but thats what i think. :)
 
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