Yeah I actually traded ALS three times above the $5 zone. All...

Yeah I actually traded ALS three times above the $5 zone. All entries were based on dividend yields assuming up to 50% cut. As you know, with yield plays you get out when price rises and yield drops. In ALS's case price was moving very quickly, quicker than I expected, so they ended up being very short term trades.

Now, onto current action, FY07 dividend is 67c, half of that is 33.5c. At current share price that's a dividend yield of 14%+.

But why would anyone liquidate positions that give 14% yield? No one throws away money like that. So clearly, the actual yield will not be 14%. The seller is expecting more than 50% dividend cut, much more.