If I calculated correctly with the 51+M shares outstanding it looks like they have a total free cash flow for according to the statement "distribution and investments" of about .28 per share during the quarter.
Hi nnrpro, just to go over what's going on with CODI. They don't cover their dividend right now because a substantial portion of their assets (20-30% of their equity value, however you calculate it) is tied up in Fox. Fox doesn't pay dividends, and they don't consolidate Fox's cash flows anymore so optically it looks like they can't cover the dividend. For instance, when CODI sells the remaining Fox stake it will be worth a bit over $200 million of cash proceeds. If they turned around and bought back their stock that would eliminate about 23% of their current share count. Then the dividend coverage will look pretty easy with the new acquisitions. I was hoping for a bit better from the new acquisitions, but overall their dividend coverage is still strong when adjusting out the Fox equity stake.
I am watching, waiting for the dust to settle a little, may drop further. FOXF giving CODI a nice equity boost today, depending when CODI needs to sell some to generate cash flow. It will be interesting to see if they cut the next dividend down to .28 or lower to match free cash flow.
Missed estimates big time, paid out more cash than generated in first quarter, and premarket is down over 3%. Looks like there could have been a leak as prices fell over the past few days.
I swing trade this and noticed that Zacks was hyping CODI daily (?) -- and there was a wide gap that had to be filled (gap was just filled around 17.50) - so if it is short term traders, then this makes sense -- it's technical chart trading, not something fundamental....if it were fundamental good news then after a brief consolidation it would have forged ahead toward it's 52wk high -- actually I am concerned about bad news and have stepped away until after the earning etc this week....
foxf acting well, but thinking traders taking this down to join the general market, breaking lower uptrend line and thinking that us interest rates are going to fly...........whacky market......incrementally just bought more.