Economic Story = Mechanism

#DailyReflection #EconomicThoughts

When a company cuts its dividend and sheds non-core assets, it’s trying to improve its financial health. Cutting the dividend frees up cash, so the company keeps more money to #reinvest in operations or #paydown #debt. Shedding non-core assets can raise cash and focus on business that will drive future growth.

So, the strategy is really about strengthening their financial position: improving liquidity (to meet debt obligations and flexible reinvestment) and future growth.

#EconomicThoughts

Since the market is forward-looking, missing a target this quarter #raises doubts about the company’s ability to deliver strong performance in future quarters as well.

(一直不知道 “怀疑度”up用什么动词，原来是raise）

#EconomicThoughts