) is a stock I have long felt undervalued and at a minimum a
cashflow machine, where as long as the core shareholders could
play nice in the sandbox, I as an investor would be along for the
ride as they sought to pay out as much cashflow as possible.
Suddenly, I'm not so sure and after years of a bumpy ride have to
reconsider my basic investment rationale.
Today, VIP cut dividends from .80c/share to .035c/share as
they talk about cutting debt and improving their balance
This comes after years of core shareholders, Alfa Group and
Norway's Telenor (
), battling it out in the boardroom with both very focused on
dividends to fund other projects.
Telenor's shareholders count on the Vimpelcom dividend to make
FCF a big part of that story.
What gives? The company is saying at their investor day they
need to catch up 4G capex in Russia and Italy, and forecasts are
that Capex sales will go from around 15% to over 20%.
Hard to see stock with a catalyst in near term and will be
sold on dividend news.
Stay tuned for more.