Read my post and stop twisting my words. I said 'and' utilities are stable...as in usually high yielding and less share price movement than other growth stocks. I didn't say that SPN is 'safer' than cash. No investment is safer than cash.
The significant cut in distribution as you call it is to fund the expansion plans over the next five years...utilities are capital intensive. The figures look fine to me and in line with what was expected.
Yes, when you issue new shares at a lower price than the current SP they often fall. Sometimes they don't though. Another stock I follow AVX raised cash at 7cents...touched 11 today and has never paid a single cent in dividend like SPN.
AST Price at posting:
87.6¢ Sentiment: Buy Disclosure: Held
