If we read the last couple of nr's carefully, the outlook for PLI looks reasonably good. When we combine that with an ng price which is gradually improving in both the short and long term, cash flow should improve gradually. the question then arises is that has PLT been living beyond its means with reqard to the dividend payout leadnig up to this point in time??
The answer is probably yes given the unexpected falling out of the bottom of the gas market over the last couple of years.Most of the pundits and the stock price itself .are stating that a cut is inevitable.
Perhaps it is, but I do not see a cut of more than a penny perhaps two. If its more than that, I suspect that PLT may be gearing itself for an acquisition that does not entail increasing its bank line and they can manage it with cash on hand. It would take 8-12 months of reduced dividends to accomplish a large enough war chest barring an increase in gas prices to the 5.00 range which is not out of the question either.
There are rumours that PLT is ripe for a takeout offer. Anything less that $6.00 or $7.00 will not attract my shares, but we will see.