The 2cent dividend was not announced to put a stop to the panic selling. It was the intention of the company from the time of floating, and a big part of the push in the prospectus. Perhaps some may be angry that they did not announce prior to the results it would be withdrawn, however at the time with the SP where it was I understand it would impossible to pay a 2cent dividend. I would agree the people buying in just prior to that would feel cheated due to management not being open enough with the real situation.
Important point to note from the market update is it quotes the divestment of 'most of the company's assets', which follows my previous post leading to the fact I dont think there will be much of a company left if they trade again. So although I am glad for once that they are keeping to their word and keeping all informed regardless of whether its bad news, once again they have now proven to be naive (IMO) by informing the market previously that it is a 'restructure', to focus on the profitable areas of the company. The latest announcement, for mine totally turns this upside down, and says what it truely is, which is a sell off of ANYTHING people will buy in order to keep the bank at bay (ofcourse at a pittance to what they bought it for in these times)...I have to wonder what will be left and if they do return surely its flogging a dead horse.
Given I do have a lot of stock I would be happy to be totally wrong here.
CQU Price at posting:
1.5¢ Sentiment: None Disclosure: Held
