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National Presto Industries Inc. Message Board

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  • pmlljl pmlljl Dec 16, 2003 2:21 PM Flag

    Dividend hope

    no slapps: I am willing to bet some money on the Pizzazz. Accordingly, I just placed an order to buy NPK at $34.85. I was counting on you and your poison pen to drive the price down further, but I am running out of time. Perhaps the other NPK investors have developed an immunity to your venom. It's a good till cancelled order so I am making one last request for you to fire up that poison keyboard and get my order filled.

    My reasoning is that NPK might pay a $2.00 dividend in 2004 and at a cost of $34.85 my yield on an annual basis approaches 6%. I just learned that my Washington Mutual platinum account reduced its floating yield from 1.62% to 1.47% which makes an almost certain 3% from NPK look pretty good and a potential 6% look very desirable. Let the criticism and insults fly!

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    • pmlljl, you rcredit rating must be suffering. Most credit card companies have been offering 0% interest on cash advances for quite a while. But you're paying 1.47%. Too bad.

      Some, like MBNA will give you $100,000 at 0% interest until next October. I guess if you bought NPK shares with free money, your return, based on NPK's dividend (which, in truth is a return of capital, not a true dividend) would look especially good.

      Anyway, PRICE has been the key factor in holiday buying decisions. For that reason, WalMart has been having a big season so far. This means any seller of goods hoping to increase the unit volume of sales had better have a good relationship with WalMart. If not, there will be a lot of inventory clogging the shelves of stores expecting to charge near retail prices for goods available at better prices down the street.

      pmlljl, it isn't my desire to manipulate the price of these shares for your benefit, but if you think the cold water of objectivity helps your cause, why should I object?

      Stockholders are waiting for a buyout announcement. Has it failed to arrive because no one wants NPK's operations?

      • 1 Reply to no_slapps
      • no slapps: No, no. I am not not borrowing at 1.47%, that is what they are paying me on savings. That is why 3% or 6% sounds so much better.

        Secondly, will you please explain to me why you say NPK is not paying a dividend but a return of capital? Do they not earn money every year. Don't they always pay out equal to or less than they earn? Well, I am still trying to buy more, so keep saying nasty things.

    • Last years dividend is taxed as ordinary income...paid out prior to dividend tax law!

      • 1 Reply to beanbean714
      • Correction: The dividend tax cut is retroactive to January 1. Long-term capital gains, however, only get the 15% tax rate for sales after some date in May. (I think it's May 5, but I'm too lazy to check it out.) So NPK's 2003 dividend does qualify for the 15% rate when you do your taxes next April.

        Merry/Happy Christmas/Hanukkah. Hope you own enough NPK that the tax savings on the 2003 dividend is worthwhile.

85.95-0.21(-0.24%)May 5 4:02 PMEDT