Thanks for the info, I appreciate it! Is 15 times FCF a standard multiple for this industry? Seems like a no brainer value- very much like IMY. Only problem with IMY is nobody follows it! Sure wish I had found this one at 2 bucks- there are few values to be had right now. Did you guys find it on a stock screen? Any advice on how to find a similar 5-10 bagger?
RC has no "regular" dividend, though they consistently pay a fine dividend. They announced (surprisingly) that they would pay a dividend that's somewhere near 30c per share in August. I expect another dividend next year (covering the remainder of 2003).
RC has $3.5M on their books in a buyback reserve. I assume that's the limit of what they will spend (at current prices, around 500k sharse or so).
The best news, perhaps, is that they are no longer paying down debt (in fact, pushed out the maturity on their LT debt to 2007). That means that their cash (most of it anyway) will be coming to shareholders, whether via dividends of stock buybacks (increasing book value).
The mention of minority shareholders was just that - an acknowledgment that the interests of their minority shareholders are important to them. It's a good thing for them to say - and to be held to.
Overall, an excellent call. And no, I'm not surprised at the pullback (on much lower volume, notice). There are LOTS of folks with profits to take, and some will...
wow, this stock has really moved- congratulations to all who got in early. I'm on the fence about buying here because the broad market is due for a fall- and the company no longer trades at a discount to book value. No earnings estimates available at all which is unusual. How did ya'll find this under 2.00? Any other similar undiscovered picks? THanks!