noslapps: Hang in ol pal. That dividend is comin' in another hundred years or so. First we have to corner the market on the diaper biz and expand the military division. Frankly, I don't own any NPK any longer so I don't really care. But you can believe that if the stock goes back to $26 I will be a buyer of large quantities of NPK. NPK is a great company if you would get over your hang-up that management has to do what you want them to do. You really should start your own company if you want to be the boss!
pmlljl, I never suggested buying NPK at $26 was a bad idea. Or $27 or $28 or $29. What's interesting is the idea held by some investors that it is worth substantially more than $26-$29 a share.
You, by selling your shares, have validated my point that the recent price cannot be justified. The price reached an irrational -- in your investment view -- level.
Would an acquirer pay $41 a share? Seems rich to me.
So what market dynamic has levitated the NPK stock price? Seems that stock buyers expected the change in dividend taxation rules to induce big one-time special dividend payouts at cash-rich companies.
But so far, the reasoning at each company announcing a big payout has been shaded by some very special circumstances at each company.
Microsoft ended its stock option plan which had for years been a big part of pay for many employees. With that gone, how else might the company reward its workers? Aha! A big dividend payout. Works nicely here.
But other than a couple of key players, there are no employees to benefit from a big cash distribution. So that theory won't hold with NPK.
Why does the company need to hold stockholders' cash? NPK's acquisition efforts? The company takes little bites. No big acquisitions. Okay, that's rational. But why keep the shareholders' money. Is it contempt for the intelligence of the shareholders?
What is NPK doing with the excess cash that warrants management keeping a death grip on it?