why is sol so flat?, page-2

I asked myself that a few times and the only conclusion I came to was:

1. Everyone knew that they would have a special dividend.

2. The pundits expected it to be around 77c. They were banking on this so that it would declare around $1.00. One noted that they thought that SOL based upon past behaviour may well only pay out a portion and spread the amount out over 3 years.

This was not liked as some parties thought they would bank $1.00 and still have their equity. On a dividend yield this share is low if you take the non special div of 32c on $14.05 is 2.3%.

Even including the special dividend its only 57c and 4% yield.

IMO I think that SOL has thought this through. The underlying earnings are in the region of 90c and thats almost double the previous year. I think the 30c to 32c was a bit miserly and that they should have said we are upping the normal final dividend to say 40c at least. People are unsure and as the company is conservative it looks like its going to retain a significant portion of income. This has sent a signal that I think is unintended. Many of SOL investors are conservative but want to see steady growth in dividends and wanted a much larger windfall special dividend

I think that these parties are selling because there are better dividends they can get elsewhere.

Personally I am not that worried and am quite happy with the price movement albeit that I dont understand the BKW SPP. Why not do a proper rights issue so that SOL can participate as well. I really dont get why BKW needed the money and if it did why not a rights issue.

So it all seems a bit confusing and I think that the market links these two companies together because of the cross holdings.

This share isnt in my trading portfolio I just keep accumulating and putting in the bottom drawer.