Spark shouldn't be falling like this just into the dividend, and a whopping dividend at that.
This implies the market doesn't believe in that dividend at all in the future. The market is anticipating a whollop of a cut to dividends into the future.
Suddenly that historical high yield dividend, if the market is correct, won't look such high yield into the future, even with the massive drop in share prices.
And this is not SPK.asx causing the problem, the New Zealand market opens an hour before us, and hammered the share price, even though the ex-dividend date is still 3 days away... get out of dodge town and forget the dividend....
Doesn't help that Standard and Poors is throwing a dummy fit and threatening to down grade SPK debt... not good... not with SPK heavy debt and paying out significantly more in dividends that the earnings generated.
Closing right on the lows running into the dividend!!!
Whilst I still hold some, glad I exited most at higher prices, even though I lost money Nothing ruins my day like loosing money, especially when the intrinsic value of the share has also declined significantly.
SPK Price at posting:
$1.88 Sentiment: None Disclosure: Held
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