Kernel plans to make zero dividend payout for 2009

Kernel Group (KER PW) circulated the documents and resolutions to be considered at its shareholder meeting on November 16 yesterday. Among other items up for consideration, the documents indicate the company’s shareholders will vote on a zero dividend payout for 2009. Andriy Gostik: Given tight capital markets, it is broadly expected that the company will need its internally generated cash to finance the expansion of its operations and service its debt. We think that the proposal on zero dividends will be approved by the AGM with no effect on the stock.