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Frisch's Restaurants, Inc. Message Board

  • fatfighter59 fatfighter59 Oct 4, 2012 3:50 PM Flag

    Guess we should have known this would fall - officers of company sold before dividend

    Lots of insiders were cashing in their options and then selling around $31 to $32 just before the $9.50 dividend. Should have realized if they thought it wise to sell, we should have also. Too late now, but need to keep an eye on insider trading.

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    • It's only logical. The pps was at $25.80 when they announced a $9.50 one-time dividend. That money doesn't appear out of nowhere.

      They paid out that much in straight cash, so the company is theoretically worth about that much less per share. In other words, an eventual drop to $16.30 should not be considered a big surprise.

      • 1 Reply to stoockatwork
      • A drop of $9.50 or so would not have been a surprise, but you are talking about almost half the price. It is, in a way, now a new company. Hard to evaluate the future value, and inflation is hard on restaurants as are recessions. But the fact they gave away all the money just doesn't seem right - why not use it (at least half of it) for more restaurants? Could it have anything to do with the CEO retiring right after the dividend? hmmm

 
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