Stock price when the opinion was issued
The consensus earnings estimate in the next 12 months is minus $0.47. Up until recently, they have been paying out dividends of $0.39, so clearly something didn’t fit, so the dividend had to go. Not a terribly strong balance sheet. If it gets down to $1.84, he would probably take a swing at this one, but with his heart in his hand.
When you look at the earnings forecast for the coming year, minus 37%, even the dividend they are paying now doesn’t cover what they are paying out. What concerns him is the long run balance sheet trend back to 2011, which is in a downward slope. It doesn’t have a particularly robust balance sheet and is paying out too much in dividends and selling at BV right now.
5.95% bonds maturing 2036. He bought these at $.63 on the dollar. Feels the risk/reward is pretty good.