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Not that I'm bullish, but that payout ratio isn't right.
The dividend has *already* been cut to 20 cents, so it's a payout ratio of roughly 22% if the analyst EPS estimates of 90-95 cents this year and next are right.

As for the shareholders' equity, tangible or not--
The equity doesn't really matter if you think they're a going concern...that matters only in a shutdown.
Many profitable firms can operate indefinitely with negative equity. Coke is a famous one. Moody's.
IBM definitely isn't having a great decade, but they are still happily making money every year with no book value at all.
This view presupposes you have concluded that they have some kind of future...say, they will have EPS of some decent fraction of today's level in 5 and 10 years.

But if you don't think they're a going concern in that sense, stay away.
A very low multiple of earnings makes perfect sense if they will happen for only a very low number of years.

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