Excellent moves, both the regular dividend and stock repurchase. Company is finally realizing they have to be responsible sending a clear message on their confidence on future growth as well finally ditching the asinine practice of releasing earnings at 8am Eastern and letting the stock trade for 2 1/2 hours before the CC.
Even though both are excellent moves it shows just how naive and out of touch these guys are with how to relate to the street and protect investors hat we have to applaud them for #$%$ things any legitimate progressive company would have had in place long ago.
The real sign for me will be when they finally get this equity to the NASDAQ where it belongs so investors like us wont be raped by a greedy specialist each time we purchase shares. My decision to remain a long term holder and supporter of this company will be based on that parameter.
Guys, I'm long and hopeful too, but these are not "excellent" moves and the market agrees. To me this action is far too little to get any positive attention. In fact I would argue to the contrary: to boast factually insignificant news which such a release looks like trying too hard. Come on, the "dividend" remains 0.7%. Any respectable company committed to rewarding its shareholders would pay out a minimum 2%. Mostly over 3%. I do agree that the stock buyback "sounds" like more positive news though we don't know in what quantity this will happen. Overall, the fact that a company with such great paper fundamentals did not participate a bit to this year's monster rally is mysterious and a big red flag. The only explanation I can make up to convince myself to hold on is the weakness in grain prices due to record production.
You make some good points Fan, but at least we need to give them credit for making mostly correct decisions on running the business. Without these great earnings results, it wouldn't help much to correct what you mentioned. It's my largest position right now. Of course, as luck would have it, the div and buyback come today and the market is expected to be down sharply.
Dividend increased to 20 cents per year unless a special dividend is declared. Nice. Also doing a small share buyback to prevent dilution from stock based compensation. Nice also.
Newport Beach, CA – June 10, 2013 – American Vanguard Corp. (NYSE:AVD) today announced that its Board of Directors has established a quarterly dividend payment policy, replacing its traditional semi-annual cash dividend payment practice. Accordingly, the Board declared a $0.05 cash dividend payment to be distributed on July 19, 2013 to shareholders of record as of July 5, 2013. Additionally, the Board of Directors voted to authorize the Company to repurchase its outstanding common shares.
Eric Wintemute, Chairman and CEO of American Vanguard, stated, “We are pleased to declare this dividend, which continues our 20-year history of providing such returns to our shareholders. This new quarterly payment approach will allow our shareholders to realize more immediate benefits from the continuing expansion and financial success of our Company. We also want to maintain a disciplined approach to our equity base. Since performance-based incentives can include restricted stock and stock option grants, we have instituted a share repurchase program with the intent of maintaining the current level of outstanding shares. This dividend policy and disciplined equity plan reflect our belief that increasing shareholder value is of prime importance to Company management and its Board of Directors. These steps also indicate the confidence that management and the Board of Directors have in the Company’s future. We appreciate our investors’ continued support as we pursue profitable growth in the crop protection and public health markets worldwide.”