Because the board are either seriously mistaken, or are not telling us the full details. They say that there will be a multi-million dollar charge in the second half, but are still willing to dump the meager cash reserves that they have.
The reason is somewhat obvious of course, if they skip a single dividend then the price will collapse even further as yield hunters vanish from the buy side. If the price falls too far then the odds the company gets bought out go up and the board and upper management lose their jobs.
Yes, I'm a very cynical person. Although if the price did fall over again I would probably buy at the right price.
HNG Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
