If what you wrote from "There is no emergency / survival ... " to the end is what the company told you then they are either just as incompetent as those behind MFS, or blatently telling non-truths.
MFS's last great statement before their suspension was that they did not "need" the $550 million they decided to go to the market for. But that it was to restore a more a more appropriate level of gearing. No need to tell how the market reacted to that!!!
CIY has fairly recently stated that they consider their gearing to be not excessive. In this market it does not take a rocket scientist to know that it you don't need money you don't go asking for a couple hundred million buckeroonies. If they said they want it they are either totally incompetant, or they do in fact need it. Take a pick.
Also, if a company claims that the current environment means debt levels should be reduced, why oh why did they maintain a 15 cent dividend?? That's a precious $22 million or so less whoever takes up the reinvestment. That smells the same as MFS paying their 20.5 cent dividend in October last year.
The more this develops the more this is looking like a delayed MFS, only with different initials. I hope I'm wrong for holders sake.
MJS
CIY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
