HPT OCT'10 - Div / EFP play

Discussion in 'Trading' started by uzair, Sep 20, 2010.

  1. uzair


    Any thoughts on why the October EFP is priced so cheaply? My thoughts are:

    - I know they suspended their dividend last year, but given their increased cashflow this year and the backlash last year, I doubt they're ready/able to do that again

    - The December EFP is priced in line with expected dividends, which again goes against the notion that they're going to suspend dividends

    All this, frankly, confounds me. Can anyone provide any insight?