nmoil, i share your opinion. the settlement is a great shot in the arm for this small cap company. if nothing else, the great dividend is very well covered. what with interest rates rising and the move to treasuries, KOSS is an ideal place to park your cash as institution selling doesn't hit here. i've moved out of utilities and other high yield stocks (other than a couple BDC's) until after the Fed move on QE3 abates and rates slow up. good time to buy KOSS. am also looking forward to next earnings report. sales campaign on new women's head phone line should begin to be realized.
a nice little run this past week to date. KOSS is a "fairly" safe bet in a couple areas. First, the dividend is well protected. Secondly, although not immune to market action, KOSS is not subjected to the whims of mutual fund buyers and sellers. It is a darn good hedge against what is happening with the Fed and with what interest rates do. Although I expect the share price to trend up, this is a safe harbor stock with good yield.
I agree. Even without the $8.5 million cash infusion, the dividend looks safe. There's ~1.5 million of non-cash amortization for the capitalized Striva software costs. This amort. will be done by June 30, 2015. The $8.5 million wasn't in the cash flow statement for this 10-K as the check wasn't received until July (it's in Receivables). They still are generating excess cash in a loss year essentially (before the settlement). I'm setting my shares on cruise control after hopefully adding a few before 9/26/2013, and also looking forward to the next quarter as retailers start to stock the new products and get ready for the Holiday shopping season.
gotta like the 7.17 P/E. solid. couple that with the current dividend yield and we ought to see some capital gains with the PPS. let's hope the new lines do decent and push sales to equal, or better than, the earnings report for same Q in 2012. should be a definite launch pad then. shares get to $7 and we should then capitalize on some institutional buying. still a great entry point even with shares up 3.31% today. need more exposure/volume.
These "family" publics can be a little dicey, but I've got a corner of the portfolio where they fit OK, I'm about 95% sure I'll make a decent roic with some koss shares. GLs to us! (surely never want to have to sell any V in a hurry, but other than that.....)