I missed out on my opportunity to sell when I had a double in share price, guess I`ll stick around a little & see what happens, as you said I don`t understand why we didn`t get a little increase.
Its been far too long now, just sitting with same payout. No growth?!? Come on now. Tired of waiting. Can't hold on too much longer for zero growth folks.
Company generated $150m of cash from the IPO of Fox. That has yet to be redeployed so naturally estimates are down. They now only own 54% of Fox so their earnings from Fox will be down 46%.
They addressed the dividend Q after the Q3 results as follows:
While we expect our cash flow per share to be reduced to a level below our current distribution per share as a result of Fox's IPO, our board made the decision to maintain CODI's current level of cash distribution given the significant proceeds generated from this transaction.
Since our own IPO, we have realized gains of more than $270 million from the monetization of our interest in CODI subsidiaries, including Fox, which are not included in our calculation of CAD.
jsut look at the earnings estimate for 2014 down 18.7% - to very conducive to an increasing stock price or dividend continuation.
I looked all over and couldn't find any news. Suspect that the run up was on hope they would increase the divi after the IPO and when they didn't the stock sold back off. Just a guess though
Insider buying looks good, Institutions sold 2.5 million, common profit taking, looks like maybe we should have sold too! I`m a long term holder of CODI since Jan. of 09, been blessed, hope something happens to stop the bleeding, probably will continue to hold.
This new insider buying should show some confidence & maybe bring in some new investors even though this is all time highs, we know a divi. increase would also be a show of confidence, it`s time.
As long as CODI remains maintains majority control of FOX, I am ok with them selling back some of the shares. But, they can't use the proceeds to do a long term boost to dividend. Only a one time special dividend...Since that would just be a one time event for them.
I much prefer they use the proceeds to invest in a small growth company instead and use the revenues from that business, as it grows, to boost the dividend long term rather than fritter it away on a special dividend pay out.
Considering that CODI retains 54% of the Fox shares, CODI can do anything it wants as far as the size/frequency of Fox dividends..I would be surprised at this point to see a significant FOX dividend because FOX is in a growth mode requiring reinvesting. Let's also understand that the CODI external mgmt group is getting hefty bonus payments related to the Fox IPO. I feel that the unit holders also deserve some of the cheese,too, either in the form of a special cash dividend or a rise in the dividend to,let's say, $1.60/ year. Either can be easily funded by selling some of the almost 20 million FOX shares that CODI retained.i
Is a gain of 3.21% in a single trading day any good for us longs? :-)
Joking aside... My theory on the discussion of when/whether/if CODI raises their dividend payouts in the future is that CODI is tied to FOX much like LIBERTY MEDIA is tied to the fortunes of SIRIUS XM.
FOX looks like CODI's biggest investment even in spite of the fact they sold off a chunk of their ownership in their IPO release. So, if FOX ever decides to raise their dividend pay outs based on future growth targets then likewise CODI will have more money to raise their own dividend pay outs.
CODI isn't as already been mentioned going to raise dividend payouts unless they can afford it. They appear to have emerged to a point where they are taking in more than they are paying out when the reverse was true for so long. To up the divis to a point where you are back in the red so soon is stupid financial management.
But, it seems like as FOX share price rises.....as FOX's financial fortunes improve.... So goes CODI.
They can either take the money and invest in another business.... Or they can increase Dividends. But, the sure fire safest way to increase dividends is to tie them directly to FOX's pay outs.
WOW!!! Just about the time CODI hit the all time high, looks like an institution or institutions took end of year profits, like I said, we don`t know what the future holds. I had to take both of my feet out of my mouth.
Alan Offenberg mentioned dividends near the end of his remarks at the start of the most recent conference call. I think what he was saying is that the $0.36 quarterly distribution is now below the CODI cash flow level since selling almost half of Fox. Paying the current distribution makes sense because they got the proceeds from the sale AND the Fox they have left is valued at more than they paid for all of Fox originally. But, if we really were to get them to make a distribution to us, CODI wouldn't have the wherewithal to go get a replacement for that lost income stream.
Roger, looks to me like this barrier will be past, a couple of Co.`s were very profitable & the FOXF IPO has given CODI some surplus for a change. We don`t know what the future holds, but it`s looking good now, would be nice to see a divi. increase of two cents, this would definitely send the pps over $20.00 to a new all time high, is this asking to much?
Above average volume today, increase in pps & no insider sales, we have a lot to be thankful for. This definitely looks good going in to the new year.