david135

Casino Stocks Actionable Call Alert

Also, just because EBITDA revisions are down 5% doesn't mean mkt val or enterprise val should only be down by the same amount... if the company deserves a 6x EV/EBITDA multiple then a 5% downward revision can erode 30% of value

Should Citi Cut Its Dividend?

Chrism - it's in the company's best interest to have a high share price! Mgmt is liable to the board which is liable to shareholders who want a high stock price.

Anyway Citi's stock price would definitely bleed some serious red if they cut their dividend... it would be a signal that they are dying regardless of finance theory about dividend policy irrelevance. This would make any capital raising in the future much much more difficult. Dilution is the only answer at this point unfortunately.