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National Presto Industries Inc. Message Board

  • pmlljl pmlljl Feb 14, 2006 10:14 PM Flag

    no_slappz

    no_slappz:

    I am awaiting your critique of NPK's quarter and yearend report.

    I think NPK's dividend is real and CVC's potential $10 is highly unlikely.

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    • pmlljl, you asked my view on NPK's latest results.

      Okay. Over the preceding year, the stock rose $2 a share and the dividend added another $2 a share.

      There's nothing wrong with that performance except that the company continues to withhold the stockholders' cash from them.

      Meanwhile, the latest 8-K suggests the market for its kitchen appliances is headed for more consolidation of stores and greater competition.

      I believe NPK is correct on both counts. That confluence won't improve operating results.

      The military market, well, it is, in a dark way, a bright spot. If the company is making 40mm cartridges, it will probably see heavy demand. As to operating profits, I'm not sure.

      Bottom line: the company is not innovating. Meanwhile, it pays out much of its earnings to stockholders, many of whom are insiders. Consequently, NPK shares have the look of a utility stock rather shares of a company with good growth potential.

      As for CVC's dividend, well, we'll see what's next. However, the various lurid escapades at the company have dominated the media coverage of it in recent months.

      The dividend was promised; that promise was broken; another suggestion of a payment was made; but as far as I know, nobody inside or outside the company knows anything about the dividend payment in question. However that could change at time.

      • 1 Reply to no_slappz
      • no_slappz:

        I can't argue too much with your assessment.

        You did write that the company "pays out much of its earnings to stockholders". I hope that is not a complaint, because all that cash they have on the balance sheet resulted from prior earnings that they did not pay out. You can't have it both ways.

        However, if I had to choose whether to own NPK or CVC, I would choose NPK in a heartbeat. The Dolans don't have their shareholders in mind and they simply don't know what they are doing. Besides, they are in a terrible industry. Perhaps only the airline industry has worse prospects for long-term success than the cable tv industry.

        My wager is that CVC will NEVER pay a dividend of any kind EVER!

 
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