Falling knife?12 Nov 2015 15:40
Hi guys, I hold this stock and pretty much was hoping for a nice steady dividend payer for the next few years but today has turned that on its head, after the crash in price today I thought about buying more but the issue for me is that the low of the 2008 crash this stock was £2.50 per share.
Ive seen other stocks like Tesco smash their 2008 lows when profit warnings and dividends were cut. I really hope they don't completely cut the dividend or we could be heading way lower. This will have been dumped by a lot of hedge/pension funds today hence the huge price movement because of that dividend statement. This is three times now I have bought a ftse 100 stock (that paid a good divi and had it cut after I bought) which caused me to end up sitting on a whacking paper loss and no dividend yield to show for it.
Who knows where this is heading but instead of buying more I may just diversify away from it and hope the sp eventually recovers. Years ago I would have jumped in today by buying more and averaging down but I have learned the hard way to be patient and diversify the portfolio and ignore price movements like this as it can leave you over exposed.
GLA