This tug boat operator has disappointed us and many others by cancelling its dividend. After casting our eye over the reported financials to 31 December 2002 we were even more surprised. Although the headline profit fell 26% to $12m, cash flows improved nicely and the balance sheet doesn't look any worse than it did this time last year. But for an income stock, culling the dividend is a big deal. The only logical reason we can see for doing so is a marked deterioration in trading results for January and February. Adsteam Marine is down 36% since issue 118/Dec 02 (Hold for Yield - $1.74) and, at these lower prices, it must look tempting to Chris Corrigan at Patrick. We're considering upgrading but are wary given the dividend cut. HOLD WHILE UNSTABLE.