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National Presto Industries Inc. Message Board

  • pmlljl pmlljl Oct 25, 2005 12:22 PM Flag



    Cablevision's guiding lights dropped their offer to take CVC private because they couldn't reach an agreement with a committee of the board.

    Now they are recommending a $3 per share dividend. Normally, dividends are paid out of retained earnings. CVC has a retained deficit of about $3,500,000,000. If the dividend is paid, will it be a "liquidating dividend"? Will they have to borrow more money to pay the dividend?

    These guys are more fun than a barrel of

    Nevertheless, the stock went down more that $3 per share this morning. Maybe Wall Street thinks it has already gone ex-dividend.

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    • pm, with respect to the payment of a "special dividend", you must keep in mind how much stock is owned by the Dolans.

      Managements very commonly reach agreement on the point of awarding themselves barrels of unwarranted and unearned cash, to be paid via "special dividends" or other methods.

      Sometimes there's even a sound financial reason to go along with the huge bonus for insiders. But most often the whopping payment goes straight to the pockets of the big dogs at the company for no better reason than they can get away with it.

      Of course, in NPK's case, there's a sound financial reason for handing the stockholders' cash back to them. But the tightwads running the company don't agree.

      Nevertheless, CVN is paying lots of dividend dough to insiders -- and the stock price is dropping. That's especially good news for management, who will have an easier time of acquiring more shares at lower prices, entitling themselves to a bigger share of the next "special dividend", or more cash in the event of a takeover, or a going-private transaction.

      Meanwhile, one of my bank holdings -- one you probably pooh-poohed -- agreed to be acquired at $42 a share in cash. ICBC will become part of SOV.

      In addition, Bank Santander simultaneously agreed to acquire 20% of SOV. You can bet that Bank Sandtander will acquire the remaining 80% of SOV over the next couple of years.

      • 4 Replies to no_slappz
      • no_slappz:

        When I read the article in the Wall Street Journal, the Sovereign shareholder claimed that SOV's deal with Santander was "empire building and job protection and nothing else".

        Do you agree? Do you support this when you claim NPK's management is doing the same thing?

      • no_slappz:

        You might also want to read about Sovereign and Santander in Mondays Wall Street Journal, section C page 3. (10-31-05)

        It says some of Sovereign's shareholders are infuriated because they won't get to vote on the deal.

        Sounds like this is nearly as bad as the things you accuse NPK's management of doing.
        I hope you will be appropiately critical.

        NPK's third quarter report, not too great. I continue to stay on the sidelines hoping to get another chance at much lower prices when the housing bubble bursts.

        I have found another risky stock to buy based on unusual factors. Would you like to give me your opinion on it? HORT is the symbol and the appealing thing is land value with a big sale in progress. It is my distressed company with too much leverage play.

      • no_slappz:

        Your banks and their merger deals are discussed on page 16 of the 10-31-05 issue of Barrons.

      • no_slappz:

        You mentioned CVN. Was that a typo?

        I don't care about your banks. They are all in for a lot of trouble when, not if, the housing bubble pops.

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