(L) Big sell-off after hours. $31.80 They lowered guidance going forward to $3.00/share. 7% dividend. This one is a buy for the long haul. Its not going away. Keep adding as it falls.
Actually they lowered guidance to $2.70 - $3.00. They pay $2.40 per year in dividends. The reason for the 7% dividend yield is that the market thinks there is a strong chance they will have to cut the dividend in the future.
Its up $1.70. $31.90 to $35.70 could have been a great play... I did not partake unfortunately. I thought it would head lower... at least for today They are leveraged quite a bit. They need to redo everything and bring out the value of their properties. Last I read (last Q) they were valued near 6B. I don't think Wexner wants to do that though. But if things get worse, he may no choice. Yeah I know that.... "down big" was just my reaction, because to be honest, the last time I had even looked at this stock was last ER and it was around $50ish.... so $31 was like "whoa"! FCF is strong. I think if there was a concern, they'd be more aggressive in working to de-leverage that balance sheet. So who knows. I'll know more when I read the transcripts of the CC.