FYI : This post was made the Friday before the buyout and is often referred to as garbage, hype and lies by some guy on this board. Maybe this name caller should listen instead of complaining about accurate predictions like this.
Thanks for all your sage advice. I am sure it will change my life forever. Also, thanks for making this you last reply.
If you are feeling sorry for me, good for you! Keep feeling sorry!! But learn about investing and do your homework before you open your mouth on a message board. You can do whatever you want with your own money but you have no right to mislead others! Understand???? This is my last post replying to your posts. Get a life! AND LEARN!!!
Re to mariy.. : You could be right, but right now the company is being evasive. This is why they have three law firms ready to sue for breech of fiduciary responsibility. I have asked for a press release from them to clear up the dividend issue. They are asking for a lawsuit if they do not disclose the answer to this issue. My guess now is they are going to delete the dividend because they always border on the shady side, like when they gave a $.43 div when 50% of the stock was held by insiders earlier & then the insiders almost immediately thereafter sold out. SHADY stuff !
The higher price value I mentioned was based on speaking to two of the law firms involved in this buyout transaction. Your accusing me of a baseless claim, but have you spoken to any of these law firms?
Sounds like the kettle calling the pot black.
Reply to amazin999: Three national law firms and I feel feel CIMT had a fiduciary responsibility to concomitantly declare any change in their dividend declaration of this year before the stock traded approximately 5M shares Monday and Tuesday of this week following a nebulously and vaguely outlined buyout agreement. I am not giving this a " rest" . I have currently asked the company to make a public clarification on this issue ASAP. You can bury your head in the sand, but I am not doing that.
You are obviously free to rest if you wish.
I can say something intelligent if I see an intelligent post!! You have been hyping for days mostly opinions reported as facts!! There is NO clear answer as of now if any dividend will be paid or not, you ASSUME that it will be. THERE IS NO REASON to believe that a higher offer will come and you ASSUME that it will be, all baseless comments. Are you new to to investing???? Running your mouth off and posting every 5 minutes HAS NO VALUE!!! How do you like this as an intelligent post???
The company can pay or not pay the dividend as per this from the press release " As part of the stated policy, the Company's Board of Directors reserves the right to declare additional dividend distributions, to change the rate of dividend distributions (either as a policy or on a one-time basis), to cancel a specific distribution or to cancel the policy as a whole at any time, at its sole discretion"
3D certainly will not want the company to pay any dividend in light of the fact that they are paying a 50% premium and there is no further need to pay a dividend to enhance shareholder value. Soon the "merger" document will be filed with SEC and detailed.
Now DJ...give it a rest..... don't you have a life ?
Why don't you make an intelligent post and provide something other than no value whining & complaints? DJ
It's time to give it a rest!! Your posts are like a broken record and are not getting much response. You make assumptions and then report them as facts!! No value!
I doubt there will be a dividend. I didn't see anything posted here or elsewhere that is a "contract" with shareholders. If there were to be a significant dividend, it would have typically been part of the PR. Moreover, they (shareholders actually) are on the hook for expenses in excess of 2MM. The uncertainly over those expenses (as well as the typical Israeli tax hassles), explains why the PPS is where it is. If a dividend were part of this, they should have made a big deal about it, rather than penny pinching on those expenses.
I also don't think it will take 3 months to close. The vote is scheduled for early Jan, therefore it should close in early Feb.
All that said, I would expect the MA to be filed today or Friday, and then we will know for certain if they are contractually prohibited from paying a dividend.
BTW, IMHO, it is an utter waste of time to contact one of the law firms on this or any other matter related to the deal. But, it is your time, do as you wish, and good luck.
I assume by Mr. Erez's response below, the dividend policy will remain unchanged and for investors to hold or buy now and hold thru closing will add "approximately" $.25 per share in value for those stockholders. The total value paid per share would become $8.97 plus the dividend amount which I estimate at $.25 = $9.22 total per share. This makes the current pps being traded a very good value for buyers today as well as those who have owned shares longer term. Waiting three months for closing nets investors 6.5% more per share. Annualizing 6.5% in three months makes for an annual rate of 26% interest on today's typical $8.66 trade price makes for a great return on investment.
Dear Mr. DJHMK4 :
"The public announcements previously made by Cimatron, both as to the dividend policy and the announcement of the transaction are very clear, and as noted, additional details will be provided in the coming period. We cannot at this time, as I am sure you appreciate, provide specific information to specific shareholders above and beyond our public announcements.
Thank you for the understanding.
amazin: Read this again:
"Our strong performance has built our cash balance to its current level of just over $20 million, an amount that is more than sufficient to fund our strategy for growth, including potential M&A opportunities. As such, we are happy to share our success more directly with our shareholders through the newly announced policy of significant annual dividend distributions. We are confident that our success in the years to come, coupled with the dividends that we plan to distribute, will create greater value for our shareholders while encouraging long-term interest and investment in our Company," concluded Mr. Haran.
This is a verbal published contract by Mr. Haran who represents CIMT. Not honoring this commitment to stockholders is defined as fraud by the SEC. If he had said that a sale would negate this dividend he would be able to do that, but he didn't.
Excellent quote ,harvyandhenry ! CIMT has a commitment to the annual dividend and the sale is immaterial and mutually exclusive of this commitment to shareholders. The cash of over $20 M that CIMT has will be used in part for the dividend payment. As soon as the sale details are announced the dividend distribution should to made clear by CIMT management to avoid any legal intervention to clarify this issue. The price per share on the open market may very well exceed $8.97per share prior to closing as a result of this dividend.
Right now we do not know the date thru which shares must be held or exactly when it will be paid, but rets assured there is a legal obligation for it to be paid.
Amazin: Legally , When a buyer buys another business, if the seller does not honor its commitments (like the dividend CIMT promised) the courts will require the seller to honor their commitment. A chapter 7 bankruptcy would be the only way out of such a commitment and CIMT is no where near any BK . CIMT has made a commitment to a dividend of 50% of earnings per share. The amount of eps would not include profit from the sale as that would be considered long term capital gains even though it definitely is earnings.