When Analysts Warn About A Dividend Cut, Should You Listen?

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Includes: APC, ARCH, ASC, AUY, AVP, AVY, AZN, BAC, BBEPQ, BBT, BHP, BRS, BTE, BWP, CEO, CHL, CMA, COP, CPA, CRR, CTL, CVE, DVN, DX, ECA, EGN, EOC, ERF, ESV, EVEP, FAST, FCX, FITB, FNB, FULT, FUN, GBL, GCI, GE, GEF.B, GG, GIFI, GTY, HCBK, HUSKF, IRET, KEY, KGC, KIM, KKR, KMI, KOF, LINEQ, LM, LNC, LNCOQ, LZB, MAS, NBL, NE, NPBC, NPK, NRG, OFC, ONB, PBI, PDLI, PEBO, PFE, POT, PSEC, PWE, RCII, RF, RGR, RIO, RRC, SDRL, SNP, SNV, STBA, STI, STT, STX, SVU, TAC, TECK, TEF, TGH, TK, TRTN, UDR, UG, VLGEA, VMC, VNR, WFC, WILN, WRE, WSBC, WSO, XEC
by: Accelerating Dividends

Summary

A sample of 100 companies that cut their dividends were analyzed to learn about the amount of time between warnings of such from analysts and the dividend cut date.

A dividend cut can never be predicted perfectly, but there are signs that investors should consider and evaluate.

I present 5 specific points that investors should be mindful of before a dividend cut was announced by companies in the sample.

Introduction

Back in January, I was catching up on the financial news and found this statement released by a JPMorgan (NYSE:JPM) analyst, in which he claimed that Potash Corporation of Saskatchewan (NYSE:POT) would likely need to cut its dividend. I was surprised by this claim. While reading the comments section, many shareholders were quick to reject this assertion, defended the stock, claimed the analyst was attempting to profit from a short position and reiterated their long-term holdings. As a result, the stock price dropped 7% on the day. Much to my surprise, POT did cut the dividend three days later, the first time since the IPO in 1989.

As I thought about this event, I had a few questions, such as:

Were there not any warning signs before this statement? Was anyone out there not warning about the possibility of a dividend cut before this? How could those shareholders have been so sure about POT and not have seen this coming?

Although I had already completed a series about companies that cut their dividends ( Part 1, Part 2, Part 3, Part 4), I had never considered if there were any warnings prior to a dividend cut. This article presents the results of my review of Seeking Alpha contributors and financial analysts' issuance of dividend cut warnings.

Methodology

My analysis contains 100 companies that have cut their dividends. I have included the majority of companies listed in David Fish's Champion, Challenger and Contender workbook as my base, since I believed these companies would have received a fair bit of attention from analysts (I include SA contributors in there as well, since what they are doing is essentially analytical work). To reach 100 for my sample, I then added other companies that I had observed on the financial news section of SA as well as other articles from analysts that were released following this article in The Wall Street Journal about slowing dividend increases and dividend cuts. I then used SA's Breaking News and Analysis sections exclusively to find any reference where a dividend cut was asserted or predicted. I restricted my review to those sections, since SA has strived to become the primary financial news source for investors. Several companies had more than one dividend cut happen. If the very first dividend cut had no warnings issued, but one of the other cuts did, I used that cut in order to make the information more recent. In the sample, I used this method five times.

Observations

The following table presents companies whose dividend was cut, the date it was cut, the first and last warning dates, the days between each and the actual dividend cut date, and whether there are any current warnings where a dividend cut has not occurred yet. The stocks are listed in alphabetical order by ticker symbol.

Ticker

Company

Date Dividend Cut

First Date Warning

Days

Last Date Warned

Days

Latest Warning

(NYSE:ACI)

Arch Coal Inc.

2016-02-11

2013-07-09

947

2015-12-16

57

None

(NYSE:APC)

Anadarko Petroleum

2016-02-09

2012-10-09

1218

2016-02-03

6

2016-02-13

(NYSE:ASC)

Ardmore Shipping Corporation

2016-02-03

None

N/A

None

N/A

None

(NYSE:AUY)

Yamana Gold

2016-02-19

2015-07-21

213

2016-01-14

36

None

(NYSE:AVP)

Avon Products Inc.

2012-11-01

2012-10-03

29

2012-10-03

29

None

(NYSE:AVY)

Avery Dennison

2009-07-30

None

N/A

None

N/A

None

(NYSE:AZN)

AstraZeneca plc

2013-08-14

None

N/A

None

N/A

2016-02-11

(NYSE:BAC)

Bank of America

2008-10-06

2008-06-13

115

2008-06-20

108

2009-01-13

(NASDAQ:BBEP)

BreitBurn Energy Partners LP

2015-01-02

2014-12-29

4

2014-12-29

4

2015-10-29

(NYSE:BBT)

BB&T Corp.

2009-05-10

None

N/A

None

N/A

None

(NYSE:BHP)

BHP Billiton

2016-02-23

2015-11-11

104

2016-02-10

13

None

(NYSE:BRS)

Bristow

2016-02-08

None

N/A

None

N/A

None

(NYSE:BTE)

Baytex Energy

2014-12-08

None

N/A

None

N/A

None

(NYSE:BWP)

Boardwalk Pipeline Partners LP

2014-02-10

None

N/A

None

N/A

None

(NYSE:CEO)

CNOOC Ltd.

2012-08-21

None

N/A

None

N/A

2016-02-13

(NYSE:CHL)

China Mobile Limited

2014-08-25

None

N/A

None

N/A

None

(NYSE:CMA)

Comerica Inc.

2008-11-18

None

N/A

None

N/A

None

(NYSE:COP)

ConocoPhillips

2016-02-04

2015-07-31

188

2016-02-03

1

None

(NYSE:CPA)

Copa Holdings SA

2013-08-07

None

N/A

None

N/A

None

(NYSE:CRR)

CARBO Ceramics

2015-03-17

None

N/A

None

N/A

None

(NYSE:CTL)

CenturyLink

2013-02-13

2012-02-02

377

2012-12-05

70

2015-05-27

(NYSE:CVE)

Cenovus Energy Inc.

2015-07-30

2015-07-05

25

2015-07-22

8

None

(NYSE:DVN)

Devon Energy

2016-02-16

2016-02-11

5

2016-02-11

5

None

(NYSE:DX)

Dynex Capital Inc.

2013-09-17

None

N/A

None

N/A

2015-06-17

(NYSE:ECA)

Encana Corp.

2016-02-24

2012-07-03

1331

2016-02-11

13

None

(NYSE:EGN)

Energen Corp.

2014-10-22

None

N/A

None

N/A

None

(NYSE:EOC)

Empresa Nacional de Electricidad SA

2013-04-17

None

N/A

None

N/A

None

(NYSE:ERF)

Enerplus Corp.

2015-02-20

2013-04-09

682

2014-12-22

60

None

(NYSE:ESV)

Ensco plc

2015-02-25

2014-10-02

146

2014-10-02

146

2016-02-02

(NASDAQ:EVEP)

EV Energy Partners LP

2016-01-25

2016-01-06

19

2016-01-20

5

None

(NASDAQ:FAST)

Fastenal Company

2011-04-11

None

N/A

None

N/A

None

(NYSE:FCX)

Freeport-McMoRan

2015-03-24

2014-12-03

111

2015-02-02

50

None

(NASDAQ:FITB)

Fifth Third Bancorp

2008-03-17

None

N/A

None

N/A

None

(NYSE:FNB)

F.N.B. Corp.

2009-02-18

None

N/A

None

N/A

None

(NASDAQ:FULT)

Fulton Financial

2009-03-17

None

N/A

None

N/A

None

(NYSE:FUN)

Cedar Fair LP

2009-04-21

None

N/A

None

N/A

None

(NYSE:GBL)

GAMCO Investors Inc.

2016-02-18

None

N/A

None

N/A

None

(NYSE:GCI)

Gannett Company

2009-03-04

None

N/A

None

N/A

None

(NYSE:GE)

General Electric

2009-02-27

2008-12-09

80

2009-01-21

37

None

(NYSE:GEF.B)

Greif Inc. B

2007-06-05

None

N/A

None

N/A

2015-02-10

(NYSE:GG)

Goldcorp Inc.

2015-07-30

2015-07-21

9

2015-07-21

9

None

(NASDAQ:GIFI)

Gulf Island Fabrication Inc.

2016-02-25

None

N/A

None

N/A

None

(NYSE:GTY)

Getty Realty Corp.

2011-09-23

None

N/A

None

N/A

None

(NASDAQ:HCBK)

Hudson City Bancorp

2011-05-03

2011-03-25

39

2011-03-25

39

None

(OTCPK:HUSKF)

Husky Energy Inc.

2016-01-19

None

N/A

None

N/A

None

(NYSE:IRET)

Investors Real Estate Trust

2011-09-02

None

N/A

None

N/A

None

(NYSE:KEY)

KeyCorp

2008-07-21

None

N/A

None

N/A

2015-10-31

(NYSE:KGC)

Kinross Gold Corp.

2013-07-31

None

N/A

None

N/A

None

(NYSE:KIM)

Kimco Realty

2009-04-30

None

N/A

None

N/A

None

(NYSE:KKR)

KKR & Co.

2015-10-27

None

N/A

None

N/A

None

(NYSE:KMI)

Kinder Morgan

2015-12-08

2014-02-12

664

2015-12-07

1

2016-02-13

(NYSE:KOF)

Coca-Cola FEMSA S.A.B. de C.V.

2015-10-16

None

N/A

None

N/A

None

(NASDAQ:LINE)(NASDAQ:LNCO)

Linn Energy LLC, LinnCo

2015-07-30

2015-04-02

119

2015-05-21

70

2016-02-05

(NYSE:LM)

Legg Mason

2009-05-05

None

N/A

None

N/A

None

(NYSE:LNC)

Lincoln National

2008-08-07

None

N/A

None

N/A

None

(NYSE:LZB)

La-Z-Boy Inc.

2008-02-19

None

N/A

None

N/A

None

(NYSE:MAS)

Masco Corp.

2008-12-10

None

N/A

None

N/A

None

(NYSE:NBL)

Noble Energy Inc.

2016-01-26

None

N/A

None

N/A

2016-02-13

(NYSE:NE)

Noble Corp.

2015-10-23

2014-10-02

386

2015-06-01

144

2016-02-02

(NASDAQ:NPBC)

National Penn Bancshares

2009-04-21

None

N/A

None

N/A

None

(NYSE:NPK)

National Presto Industries

2014-02-14

None

N/A

None

N/A

None

(NYSE:NRG)

NRG Energy

2016-02-29

None

N/A

None

N/A

None

(NYSE:OFC)

Corporate Office Properties Trust

2011-12-07

None

N/A

None

N/A

None

(NASDAQ:ONB)

Old National Bancorp

2009-04-27

None

N/A

None

N/A

None

(NYSE:PBI)

Pitney Bowes Inc.

2013-04-30

2012-06-07

327

2013-04-10

20

2015-11-11

(NASDAQ:PDLI)

PDL BioPharma

2016-01-26

2015-02-05

355

2015-07-14

196

None

(NASDAQ:PEBO)

Peoples Bancorp OH

2009-08-27

None

N/A

None

N/A

None

(NYSE:PFE)

Pfizer Inc.

2009-01-26

2008-06-12

228

2008-06-12

228

None

Potash Company of Saskatchewan

2016-01-28

2015-01-25

368

2016-01-25

3

None

(NASDAQ:PSEC)

Prospect Capital Corp.

2014-12-05

2014-08-26

101

2014-08-26

101

None

(NYSE:PWE)

Penn West Petroleum

2014-12-17

2014-12-04

13

2014-12-09

8

None

(NASDAQ:RCII)

Rent-A-Center

2016-02-01

2015-08-31

154

2015-08-31

154

None

(NYSE:RF)

Regions Financial

2009-04-16

None

N/A

None

N/A

None

(NYSE:RGR)

Sturm Ruger & Company Inc.

2013-11-05

None

N/A

None

N/A

None

(NYSE:RIO)

Rio Tinto PLC

2016-02-11

2015-11-24

79

2016-01-12

30

None

(NYSE:RRC)

Range Resources

2016-02-23

2015-09-29

147

2015-09-29

147

None

(NYSE:SDRL)

SeaDrill Limited

2014-11-26

2012-10-14

773

2014-11-24

2

None

(NYSE:SNP)

China Petroleum & Chemical Corp.

2014-08-25

None

N/A

None

N/A

2015-02-13

(NYSE:SNV)

Synovus Financial

2008-09-11

None

N/A

None

N/A

None

(NASDAQ:STBA)

S&T Bancorp

2009-06-15

None

N/A

None

N/A

None

(NYSE:STI)

SunTrust Banks Inc.

2008-11-12

2008-06-20

145

2008-06-20

145

None

(NYSE:STT)

State Street Corp.

2009-02-05

None

N/A

None

N/A

None

(NYSE:SVU)

Supervalu Inc.

2012-07-11

2012-03-27

106

2012-03-27

106

None

(NYSE:TAC)

TransAlta Corp.

2016-01-15

2015-11-23

53

2015-11-23

53

None

(NYSE:TAL)

TAL International

2015-09-30

None

N/A

None

N/A

None

(NYSE:TCK)

Teck Resources Limited

2015-04-21

2015-01-15

96

2015-04-01

20

None

(NYSE:TEF)

Telefonica S.A.

2011-10-20

2011-09-22

28

2011-09-22

28

None

(NYSE:TGH)

Textainer Group

2015-10-30

None

N/A

None

N/A

None

(NYSE:TK)

Teekay Corp.

2015-12-17

None

N/A

None

N/A

None

(NYSE:UDR)

UDR Inc.

2009-03-17

None

N/A

None

N/A

None

(NASDAQ:UG)

United-Guardian Inc.

2013-11-22

None

N/A

None

N/A

None

(NASDAQ:VLGEA)

Village Super Market Inc.

2009-03-20

None

N/A

None

N/A

2014-09-12

(NYSE:VMC)

Vulcan Materials

2009-07-10

2009-01-12

179

2009-01-12

179

None

(NASDAQ:VNR)

Vanguard Natural Resources LLC

2015-01-22

2014-12-18

35

2015-01-05

17

2015-08-09

(NYSE:WFC)

Wells Fargo & Co.

2009-03-06

2009-01-22

43

2009-01-22

43

None

(NASDAQ:WILN)

Wi-Lan Inc.

2015-11-04

None

N/A

None

N/A

None

(NYSE:WRE)

Washington REIT

2012-07-26

None

N/A

None

N/A

None

(NASDAQ:WSBC)

Wesbanco Inc.

2009-08-27

None

N/A

None

N/A

None

(NYSE:WSO)

Watsco Inc.

2013-01-11

None

N/A

None

N/A

None

(NYSE:XEC)

Cimarex Energy

2016-02-23

None

N/A

None

N/A

None

Click to enlarge

It may surprise you to learn that for 60% of the companies in this table, I could not find any evidence of a dividend cut warning issued by SA contributors or analysts prior to the dividend cut announcement. Furthermore, the average time between the first dividend cut warning and the actual dividend cut announcement was 251 days (or 117 days for the median), while the number of days between the last warning and the actual dividend cut announcement was 60 days (or 37 days for the median). This does go to show that there may be some time to review the company you hold before a dividend cut is announced.

At this time, there are several companies that have dividend cut warnings issued from various analysts. These companies include APC, AZN, BAC, BBEP, CEO, CTL, DX, ESV, GEF.B, KEY, KMI, LINE/LNCO, NBL, NE, PBI, SNP, VLGEA, and VNR. If you haven't been watching your investments, it may be a good opportunity to review your thesis on these companies.

My primary intention was to gather dates of the first and last warnings issued prior to the actual date that the dividend cut was announced. However, while reviewing all this data, I made many additional observations that seem to me far more valuable than my original intention for this article.

Here is a point-form presentation of my observations:

International stocks or stocks with semi-annual or annual payouts appeared to receive less coverage (even for well-known names) or absolutely no coverage at all from analysts regarding the dividend. These stocks had the tendency to be the ones that had no warning of a possible dividend cut. For example, AZN had some coverage, but not nearly as much as COP. Seeking Alpha (SA) does provide lots of coverage for news regarding the company. Therefore, it is more likely that dividend cut warnings are likely to come from SA contributors.

SA contributors were the first to question the safety of the dividend, were usually the first ones to warn about a possible cut in the dividend and were usually more accurate than analysts. This is the power of crowdsourcing, and Seeking Alpha's platform allows many authors to analyze the companies and publish their findings. These articles provide an opportunity for introspection on one's investment. It may be best to choose some authors that you like and follow them to get timely articles. During the course of this review, I often found that SA Contributor Valuentum issued warnings prior to a dividend cut. Although Valuentum was not perfect in all cases and did not cover all stocks, their contribution could have assisted investors in preserving capital if investors heeded their warning.

When there are multiple articles that evaluate whether a dividend cut is coming, it is a signal that perhaps it is. In the case of KMI, there were tonnes of articles claiming the dividend was safe and not safe. There were all sorts of rebuttals about a previous article's claims or analysis. In the comments section, investors were blind to the warnings, claiming it to be another "negative" article, another bashing, another short attack, etc. What they all seemingly had in common was a confirmation bias that the author of a dividend cut warning was wrong, and it couldn't possibly happen. The number of articles questioning the safety of the dividend should be a warning that perhaps investors should consider and review their position in the company to ensure that the reason they chose the company is still valid. It does not mean you have to sell because someone issued a warning. However, although McDonald's (NYSE:MCD) is facing stiff competition and global headwinds, there are not many articles regarding the possibility of a dividend cut being written.

It was usually within months after management was forced to address the safety of the company's dividend that it was actually cut. There were several companies whose management teams claimed that their priority was the dividend, that the dividend was safe or that they had the cash flow necessary to increase the dividend and pay it out over a certain period of time. These companies included AVP, BHP, COP, CVE, GE, KMI and NRG. If management has to address the issue, it is likely that the safety is in jeopardy. Furthermore, if management has to address the topic of a dividend cut, a dividend cut may be imminent.

When analysts finally call into question the safety of the dividend, it is likely your last warning before a dividend cut is actually announced. I found that analysts were usually within a few weeks to a few months stating that the dividend was likely to be cut. One of the other points regarding analysts was that they rarely come out and state that they believe the dividend will be cut. Some will beat around the bush by talking about cash crunches, weak earnings outlook and so on. It may be that analysts want to protect their reputation if they are wrong, or given that they generally know what the result will be if they actually do state a dividend cut is likely. In the case of POT, the stock dropped 7% on claims from the analyst. The stock barely moved on the actual day the dividend cut was announced. What was more baffling to me was the number of investment firms that recommended one of these companies as a long position within days of the dividend cut announcement.

Do not rely on the company you are invested in to be covered and analyzed by analysts who may be going over so many companies within the sector that they may not have time to cover your company. I found that they focus only on a few, usually the most widely covered and well-known companies. Also, they appeared more focused on the trend than the companies. For example, there was lots of news regarding the decline in oil prices, and many analysts supported certain companies because of certain strengths and advantages. Only when the price of oil really declined did analysts start to delve into specific companies in more detail and assess the risk of the current environment. At this point, though, it may be a little too late for some companies.

Unless you monitor your investments closely, when a dividend cut warning is issued, it may already be too late. Too late in the sense that the stock price may have already depressed to such a point that it may have dug into the initial capital investment. For example, take the POT price chart below. The first dividend cut warning was issued on 2015-01-26 and the last was issued on 2016-01-25, one year later. The stock price dropped 58.65% during that period. It also appears that the market begins to price in a dividend cut with each subsequent quarterly miss, or cash flow reduction, or declining sector outlook (in this case, declining commodity prices). There were a few articles published several months before the dividend cut, but by that time, a lot of damage had already been done.

POT Stock Price Chart Click to enlarge

A high dividend yield, particularly one that is above the average for a sustained period of time, may be a serious indicator of a possible dividend cut. I noticed that investors were happy to pick up additional shares when the prices declined because they could cost-average down and increase their yield on cost. However, many of the articles regarding dividend cut warnings centered on the "high yield" of these companies as one of their signs that trouble was coming. Yes, high yields are great in a low rate environment, but it seemed that the high yield was blinding investors to the real reason why the company had a high yield, almost like they were chasing the yield. Even as the yield increases, the company has to be able to pay it, and therefore its cash flows need to keep pace, otherwise the company may issue shares or take on debt, which in and of itself is not a good sign either.

The company that cut its dividend was in a sector that was experiencing a serious downturn, bear market or was in a crisis. Many of the stocks in this sample were financials dating back to 2008-2009 and companies tied to oil or other commodities such as gold or coal. When a sector begins to be stressed, investors should take notice and review their investments within that sector more closely.

Unless you have an SA PRO account, some articles may have warned investors, but is not widely available to all members of this community. Based on the titles of some articles, I would suspect that they discussed the safety of the dividend and, in some cases, even stated that the dividend was at risk - but because it was archived in SA PRO, I could not know for certain. In some cases, the SA PRO article was the only likely article to address the issue. Investors should take time and read the comments section of articles. The comments themselves are nearly an article, with interesting viewpoints and, in many cases, supporting documentation or evidence supporting their position.

There were very few announcements made by rating companies regarding the credit rating of these companies. It is possible that these companies had poor credit ratings, but those like GE had investment grade credit ratings. If investors are looking for the support of credit rating agencies to assist them in learning about the potential for a dividend cut, this is not likely going to help. The only case where I saw an agency revise its credit rating prior to a dividend cut was for TCK on 2015-09-14, two months before the company cut its dividend again for the second time. There was no revision of the credit rating before the first dividend cut.

Using the above information, I want to cover review one stock that I have been watching and may be at risk of cutting its dividend.

The first is Seagate Technology (NASDAQ:STX). Seagate currently offers a generous 7.58% dividend yield. The current yield is over twice its 5-year average (3.50%). Its yield has been above the average for nearly a year. STX has been pressured by competition, decreasing data storage prices and decreasing sales of traditional hard drives and PCs. The current dividend payout ratio is 38.09% using EPS or 40.71% using free cash flow. The dividend coverage ratio (which is calculated by taking the free cash flow / dividends paid) currently sits at 2.46, which means STX has ample room to cover the dividend. What is concerning is that this ratio has been declining since 2012, when it was 6.67.

A dividend warning was issued on 2015-08-27 by SA contributor Storage Guy. There are far more "positive" or support articles for the stock presently, as SA contributors claim that this is a good time to consider STX yield. Analysts are rather mixed regarding the stock, with some issuing downgrades due to poor PC sales as well as weak memory and storage demand, while others claim a rebound is slowly occurring in the PC market, and are citing STX's high dividend yield. None of the analysts have touched on whether the dividend is considered safe.

STX management has not addressed the issue of whether their dividend was safe.

The stock price peaked at $68.82 back in December 2014 and has since dropped below $25.00 back in January 2016. This is a decline of over 60% during the period. This drop has been influenced considerably by the news already discussed. But it may also be that due to these issues, the market is beginning to price in a dividend cut. STX has already cut its dividend once before, so a history is there.

Looking at this information, Seagate does not seem to fit perfectly into the mould that I have observed for companies that cut their dividends. At the moment, I would have to judge, strictly based on the points I have raised in this article, that STX is not likely to cut its dividend in the short term.

STX Stock Price Chart Click to enlarge

Conclusion

To summarize my observations about companies that cut their dividends, some of the warning signs include:

  1. High dividend yield above the company's usual average over a long period of time.
  2. Management addressing the issue of sustainability of their dividend.
  3. A growing number of articles on SA questioning the sustainability of the dividend.
  4. Analysts tend to be the last ones to warn about a dividend cut before it happens.
  5. The sector the company is in is under pressure.

Not every company will fit into this mould, but these are some signs that investors should take seriously in order to protect themselves. Many dividend growth investors claim that they will sell their positions when a dividend cut is announced, but by that time, they may be selling at a loss. Selling before a dividend cut occurs may help preserve their capital investment, and may provide them an opportunity to pick up shares of the company at undervalued prices later on if no cut was ever announced.

For many of the companies that cut their dividend during the financial crisis, the amount of coverage by SA during those periods was far less than it is today. As I went from year to year in the Breaking News section, I could see the improvements in SA news coverage for stocks. But evidently, because a large number of the companies cut their dividend in the early development of the site, using SA as the only source for coverage on these stocks no doubt had an impact on the results of this analysis. It is likely that future dividend cut warnings will be better covered by SA contributors and news coverage.

Investors may be best served to re-evaluate their position of a company when an author has issued a dividend cut warning. This evaluation will provide investors an opportunity to review changes within the company or the sector that may have a serious impact on the company's ability to pay a dividend. Investors should have an open mind and be able to have the mental fortitude to accept different opinions rather than be know-it-alls, but at the same time, be armed with solid data to support their position, should they decide to disregard the warning.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.