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Lakes Entertainment Inc. Message Board

  • tobydoginhs tobydoginhs Sep 2, 2013 8:59 AM Flag

    Do LACO shareholders deserve a share of the 57.1m check? VOTE HERE

    Express a preference for (1) a special dividend of 15 to 25 cents a share
    (2) a quarterly dividend of 5 to 10 cents a share or (3) a stock dividend of
    10% to 20%. Jose, a special request. PLEASE, no new messages until Sept
    5 except to vote below via a REPLY to this message. The shareholders
    need make their voices heard, and this message needs to stay at the
    top of the message board. .We need to send 70+ Lyle and the mostly
    70+ B of D a request.

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Number 2..........QUARTERLY DIVIDEND

    • I would prefer to see a share buyback program announced by the Board of up to 5% of the issued and outstanding common shares.

      It is a better alternative and reward for the shareholders as Passive income of Dividends is ordinary income now and not as it was during Bush/Channey.

      The Good Dr's In!

      Sentiment: Buy

    • Toby, I'm going to have to vote for (4) None of the Above. Sorry, but I believe the money would be better spent on projects that could significantly increase the price of the stock. PENN, MGM, CZR, none of these companies pay a dividend and investors don't expect one. I bought LACO for appreciation - if I wanted a dividend I would have bought something else. Finally, I believe dividends are taxed as ordinary income while appreciation, or capital gains, are taxed at a lesser rate. I realize it would be a one time special payment but I'm just not in favor of it. Also, to me, stock dividends are just fluff and accomplish nothing because of the resulting dilution.

      • 3 Replies to littleturtle5656
      • I am in agreement with littleturtle. I'd rather have the money used within the existing business and decide myself when at some future date to take the tax event.

      • Lyle pretty much said he was going to distribute some cash and Im ok with that rather than him possibly blowing the $ on some risky venture as he has been known to do.

        LACO has no immediate need for all that cash and Lyle is 70, perhaps he want cash too ?

        I dont believe our LACO dividend is going to be subject to ordinary income taxes. I believe it would be a qualified dividend with the same tax rate as long term capital gains. (For those that have owned the stock for at least a year) And it might even be able to be distributed as a "return of capital".
        Distributions that qualify as a return of capital are not dividends. A return of capital is a return of some or all of your investment in the stock of the company. A return of capital reduces the basis of your stock. (From the IRS)

        Finally, they could opt for some kind of a dutch tender offer although Lyle mentioned a dividend.

        Im also ok with a regular dividend because I think it would help the stock valuation even if its just a little, its better than nothing. Right now, like it or not, LACO trades at a DISCOUNT for what they might do with their cash. Distributing most of it to shareholders would be a good thing since they clearly dont have any
        "no risk, high reward" type ventures to invest in.

        From Fidelity....
        Since 2003, certain dividends known as qualified dividends have been subject to the same tax rates as long-term capital gains, which are lower than rates for ordinary income.

        Qualified dividends are generally dividends from shares in domestic corporations and certain qualified foreign corporations which you have held for at least a specified minimum period of time, known as a holding period. Another requirement is that the shares be unhedged; that is, there were no puts, calls, or short sales associated with the shares during the holding period.

      • well toy now you heard from a pro so go back to yourjob and get lost

    • Jose, I asked politely to keep the message boards open to vote on a dividend. I believe
      a dividend would be of great benefit to you as well as every shareholder.
      Please read my "vote request" message, Por Favor.

      Sentiment: Strong Buy

4.41-0.02(-0.45%)Jul 25 3:21 PMEDT

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