2 Fallen Former Dividend Kings For A Small Cap Recovery Trade
LEGLeggett & Platt(LEG) Seeking Alpha·2024-08-10 00:51

peepo/E+ via Getty Images Small Caps that used to be large Data by YCharts As mentioned in my previous article on Lumen Technologies (LUMN), I adore taking shots on stocks that are -70 to -90% off their all-time highs as long as the revenue story hasn't changed a whole lot. These types of companies normally drop by such a devastating amount due to a few factors. 1. A dividend cut 2. Earnings or free cash flow going negative 3. A debt crisis followed by credit downgrades My criteria are fairly simple in thes ...