I think the biggest problem with American Greetings is the prospect of a diminishing market with large potential liabilities that will reduce profit or translate into future losses. Clinton Cards, the new SAP system along with a new corporate headquarters will seriously impact their free cash and I can see the ratings on their debt falling further as a result. Let’s face it, S&P doesn’t have a high rating on their current debt for a reason.
The company is run like a private piggy bank for a family that has far too much say in what happens and family members are not always the best candidates for top positions at a company.
It's a bit of a mystery to me also. considering the yield and consistency of the dividend. There is a fairly large portion of the book value of patent/trademark related "rights" which are periodically marked to market.
My guess is that some folks think that paper greeting cards could go the way of the buggy whip, but I disagree and find the valuation of the stock to be attractive.