L Brands

V

vanzandt

(L)
Big sell-off after hours. $31.80
They lowered guidance going forward to $3.00/share.
7% dividend. This one is a buy for the long haul. Its not going away.
Keep adding as it falls.
 
vanzandt said:
They lowered guidance going forward to $3.00/share.
7% dividend. This one is a buy for the long haul. Its not going away.
More...

Actually they lowered guidance to $2.70 - $3.00. They pay $2.40 per year in dividends. The reason for the 7% dividend yield is that the market thinks there is a strong chance they will have to cut the dividend in the future.
 
Its up $1.70. $31.90 to $35.70 could have been a great play... I did not partake unfortunately. I thought it would head lower... at least for today


zdreg said:
there is more bad news coming. what do think of their debt level?
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They are leveraged quite a bit. They need to redo everything and bring out the value of their properties. Last I read (last Q) they were valued near 6B. I don't think Wexner wants to do that though. But if things get worse, he may no choice.

OptionsOptionsOptions said:
  • Only - 5.5%
  • Typical earnings move for any stock.
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Yeah I know that.... "down big" was just my reaction, because to be honest, the last time I had even looked at this stock was last ER and it was around $50ish.... so $31 was like "whoa"!

DaveV said:
Actually they lowered guidance to $2.70 - $3.00. They pay $2.40 per year in dividends. The reason for the 7% dividend yield is that the market thinks there is a strong chance they will have to cut the dividend in the future.
More...

FCF is strong. I think if there was a concern, they'd be more aggressive in working to de-leverage that balance sheet.

So who knows. I'll know more when I read the transcripts of the CC.
 
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