"I think Poseidon do have an issue with Div sustainability. They only earn 10cents in the quarter, but they need to give out 27 cents div."

Maybe.  Consider that the big reason for the earnings decrease is due to $9.5 million *provision* for bad debt.  This is disturbing as it indicates their credit/collections people need to do a better job.   Actual cash flow from operations was 31 cents per share.    But their cash on hand went from $12 million to under $4 million in the quarter... scary.

It definitely is a cyclical business they're in and they've grown very very fast.

Also when I look at their balance sheet, I see receivables are 3x higher compared to the same time last year... but their revenues are less than 2x higher for the 3 month numbers.  9 month YOY numbers still look great.

I think the company will pull through... but they have to do a much better job with their credit/collections.

And for the dividend to be maintained, business needs to pick up soon combined with the credit/collections issue needing to be fixed ASAP.

http://www.poseidonconcepts.com/_pdfs/Poseidon2012Q3_Whole.pdf

 

"After they downgraded the stock Thursday, the stock actually rosed on Friday."

I wouldn't be surprised if this is just a dead cat bounce and it will be back under $5 soon.