Q: SPB cut their dividend by 75% late last year. They have bought back almost 5% of outstanding shares since then. Seems like a stable energy distribution business where scale offers cost advantages. It is leader in Canada and 4th in US.
The shares are down 60% from their high a couple years ago, but all assets and accounts, etc remain intact. The only change I can see is capital allocation has changed from dividends to buybacks.
Your thoughts???
The shares are down 60% from their high a couple years ago, but all assets and accounts, etc remain intact. The only change I can see is capital allocation has changed from dividends to buybacks.
Your thoughts???
5i Research Answer:
The shareholder base has probably rotated by now away from yield investors. The problem is that...