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Originally Posted by fleury
CJR.B? I'm still in to my detriment. I don't have an exit strategy in all honesty.
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Okay please don’t take my random internet guy advise but I did ask my broker a while back about what they do in this situation. He said point blank they usually buy more to average out the cost. So say you bought 100 shares at $20, your book cost is $2000. If the stock is now $4 your market value is now $400. So take $400 and buy 100 more shares. Your 200 shares now only need to reach $12 to break even. That’s not even counting all the dividends you earned in the meantime which brings that break even point down a bit more as a line item.
As for the company itself, the dividend cut is a good thing as it will attract more investors and allow it to put more cash towards paying down debt. The big $1 billion write down appears to be a one time thing, and if that wasn’t there they would have made a decent profit. I wonder too if bigger media companies will see this as a buyout opportunity. The current book value is $11.88 so any buyout would have be at least that. The long term prospects are still very concerning, especially on the radio side, but I definitely wouldn’t sell now as this is likely the low point. Set a target loss point that you’re comfortable with and get out then.