Dynamite Fishing in the Danger Zone - Laird

[grimer]

The yield on Laird is currently topping 9.8%.
Dividend cover is apparently 1.6.

http://markets.ft.com/data/equities/tearsheet/summary?s=LRD:LSE

They've issued a profit warning and the share price has halved in the past month. IC has downgraded their rating from 'Buy' to 'Hold'.

I know this will be flashing nuclear on Luni's risk scale, but we have seen a couple of companies pull things back from these yields - RDSB & BP. We've also seen BLT and RIO succumb to market realities.

Any thoughts? Has anybody been tempted or taken the plunge? Are we at a stage where a dividend 're-basing' (e.g. halved) would still leave a decent dividend?

[toofast2live]

Sold out! I've been caught out too many times by "multiple profit warning" syndrome, especially in the tech space.

Of course, whether my purchase with the sales proceeds delivers more income has yet to be seen. FWIW the proceeds went into LGEN, about a month ago.

OTOH I held on to BHP and AMEC Foster Wheeler because I saw them as good companies in deeply depressed industries. Does that make sense? Probably not.

[jackdaww]

the lesson for me is if tempted by these good yielding good sounding high tech outfits ,

take only a small position - ie diversify more ..

[fireblade909]

I have held LRD in the past and couldn't resist taking half a holding, partly because the consolidation in this space will easily push the SP of this US based outfit back up. apologies if these musings are OT for a HYp board