Replies to post #38380 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Re:

Return of capital is more important than return on capital.

The 14% dividend will not do you much good when the dividend is cut and the stock price is cut in half.

So, is it your expectation that MORL could go to zero, or even down 50% and never recover? If it is held long term I would think that even after a few dead cat bounces, like silver has done, it would recover to very near where it is now and so would incur little or no loss of capital and you would have whatever income, even though it might have been cut drastically, and then would be ahead of the game compared to letting it sit in a Treasury or CD. What do others think? Is there a better alternative?

Thanks,

Allen