after being pounded last week IAR refuses to even dead cat bounce. I am not getting married to this one but I am planning on dating a little bit to see if I can get some. 14% DID yield that goes X div on the 19th. SnP downgrade and it took an ass kicking after reporting earnings last week. I added some more today as I see the downside risk getting smaller and smaller (again in the short term NOT 2 years from now)
I bought some more today at 9.15 I love these types of stocks. profitable, High dividend, very low PE and unwanted
it's not about hating the stock. you know they are down this much because they are having trouble servicing their debt. they have 9 billion in debt. the div will be the first thing to get cut. it may work as a trade but they are dead in the water as a company. who the hell uses yellow pages anymore besides old dying people?
I 'know' that its not about 'hating' the stock. I thought it was a good subject line though. I would not agree that they are having problems servicing the debt but perhaps the fear is that they will have trouble. It sure is a big number but so is the revenue and profits. If they cut the dividend in half it would still yield 7% and the PE is less than 4. The BOD just announced and are about to pay a dividend so the latest information they have is that they can pay the dividend. Yellow pages dead?? Is that like how the malls will go out of business from all the internet stores? While the internet may take over a larger share of the pie I think the yellow pages will be around making money for a while.(I don't plan on owning this stock for ever...LOL) At $9.xx a share I think its good for a 20%+ pop with very little downside. Especially when it goes X-div on the 19th.
IAR refuses to do anything but fall. BOD booted the CEO and replaced her with the COB. No love no love.
they have a stupidly massive amount of debt. like i was telling you it is a debt servicing problem. i like going after those dividend bounce plays on stocks without debt/earnings problems. like i made a pretty nice trade on FLY the other day catching the bottom of that pullback range. i knew they had no material issues like IAR and i was planning on scaling in more if dropped further, but it didn't. that being said IAR is pushing oversold areas for now.
Painful as you can tell. I did get the fat dividend but I am still way underwater. it appears that 7.5 is support as huge amounts of buying on the ask took place at / around 7.50 I 'hope' I have seen the bottom today but it also appears that I will need to exit if it goes up or down as I don't like to hold a trade this long.
Perhaps in this case I should have. But the results of one stock don't matter. I am working my overall plan with IAR and I feel its very cheap at this price. They do have a huge debt load but no problems servicing it. It appears to me that the stock is just selling off due to panic and I don't think thats the time to sell but rather thats the time to buy. At some point it doesnt matter what I think and I may throw in the towel as I wont sit by and watch it go to zero either. I think once the stock has a couple of up days in a row this will really rocket up.