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This is what happens when you surprise suspend the dividend. This should be a warning to all other CEOs 0 comments
On October 11th, TXI closed at 32.82. On November 25th is closed at 22.55. That's a loss of 31% for their shareholders. They do have a beta of 2, so you'd expect that they'd bounce about more than the S&P. The S&P over that time period fell from 1207.25 down to 1158.67 for a loss of 4%. That's negative alpha of 23% since that surprise announcement.
This should be a warning to CEOs. Surprise dividend cuts cost shareholders big time. I wouldn't be surprised if changes to management and/or the board happen over the next year.
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