Alcoa (AA), a Dow stock which presently has a 6 handle, slashed the quarterly dividend from 17¢ to just 3¢. The last cut was more than 25 years ago. The stock rose 39¢ to 6.12 during trading hours but slipped back 88¢ after hours. In addition, AA will sell $1.1B of stock & bonds to raise capital. This follows a previous announcement that 13% of the workers would be let go. Their business has been hard hit buy the global recession. The theme to "conserve cash" will be repeated by other companies facing similar financial difficulties. In an environment where workers are laid off & salaries are reduced, shareholders will be asked to share in the suffering.
•Alcoa to Slash Dividend 82%, Raise $1.1 Billion as Aluminum Demand Falters
Speaking of pain & suffering, AIG did not respond to the request by NY attorney general to name recipients of the bonuses. Their officers are going to experience a lot of pain & suffering.
•AIG Faces Pressure From Obama, Subpoena From Cuomo Over Employee Bonuses
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