Why Sherritt International Corp. Shares Dropped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Sherritt International fell 12% today after the Canadian miner reported earnings.
So what: Fourth-quarter revenue dropped 17% to C$108.6 million. and Sherritt reported a loss of C$0.46 per share even after pulling out coal operations that are being sold. The quarter also included a C$466.8 million impairment for the sale of those coal assets, meaning the sale price was well above what it cost Sherritt to build them.
Now what: Things are so bad that Sherritt's quarterly dividend is being cut from C$0.043 per share to just C$0.01, taking away most of the stock's yield. Investors have been hoping for a mining recovery for years and it just doesn't seem to be coming, even with the coal sale. I'm staying away from this stock and would wait for positive results to jump in at all.
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The article Why Sherritt International Corp. Shares Dropped Today originally appeared on Fool.com.Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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