No one forgot the cash on hand...if not for the cash, the deal price would have be $7.10.
There's no mystery or surprize here..... the company was valued from an operating basis and from a balance sheet basis. It's called EV/EBITDA.
Legally binding ? What ?? So who did the board sign an agreement with regarding the dividend ? Your legally binding dividend exists "in your dreams".
FYI...a dividend is only payable when it is approved by the board. The dividend board meeting would not have happened until year end results were announced around March 2015.
I am sure the merger agreement would not allow CIMT management to pay a dividend in light of the merger.
I believe whoever is selling today is selling too low and forgetting the dividend at year's end plus the traditional ramp up to the buy out price of $8.97. The sale does not negate the dividend the company announced. Hang in there or you will regret it.
Reply to rfdranger: Your numbers seem to be correct, but you still must subtract 50% of the EPS for the year that is paid out of the cash on hand for CIMT. At $.40 earnings that would be $.20 on the 10.8 M shares or $2.16 M paid to shareholders . My guess is the dividend will be added to the $8.97 buyout price, which would really be $9.17 per share using the $.20 dividend figure. Getting $9.17 in January per share is a sizeable difference than its current price of $8.66 (about 6% more for those who wait for closing. I can wait for closing.
Don't forget the cash on hand.
...."The company had an 88% gross margin and 16% operating margin for the third quarter, as well as, a net cash balance of $20.1 million or $1.87 per share."
$8.97 - $1.87 = $7.10 per share purchase price.
This dividend is also another good reason for DDD to accumulate shares of CIMT at a discount prior to closing.
CIMT was just waiting to happen ... it was so cheap! Similarly: check out BVSN also ... big sizes' bids lined up there now ... looks like the bottom is in ... a beautiful opportunity indeed! Happy Thanksgiving grand-kids!
Sentiment: Strong Buy
Closing is in Q1 of 2015. Dividend adds &17 to $.21 more value to shareholders of record that hold thru Q4.This stock could potentially trade over $8.97 before Jan1,2015. The dividend is contract by the CIMT to pay on 50% of the eps at year's end.
While I agree with you that the potential for much higher prices was there, but we must remember that we are dealing with a micro cap company and sweetheart deals are not that unusual. Also, there is a chance that the management was seeing what was coming for the company in a few years and it made sense to sell and have a secure future for themselves. My opinion.
Why didn't you buy more under $10 if you thought it was worth $10. professor? You should be buying today at $8.66 if you REALLY think it is worth $10. You a virtually guaranteed $8.97 per share at a minimum. Stop complaining & buy more, you can't lose !!!!!!!!