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K-Swiss Inc. (KSWS) Message Board

  • smw2340 smw2340 Nov 14, 2008 11:45 AM Flag

    Anyone following this?

    any comment on the special dividend? shareholders on record dec 10 get $2. seems like a way to pay off insiders before its demise.

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    • This scam for insiders to cash out (i.e. huge special div) was recently used by retail chain The Buckle (BKE), which declared a special dividend of $3.00 per share.
      Seems absurd that a retailer entering such a challenging environment would have paid our 1/3 of their cash at such a critical time, esp.since they are still expanding.
      To make a long story short (no pun intended), the stock has dropped by a third since the stock went ex-Div on 10/15, and by nearly half since the announcement of the spec. dividend on 9/15.
      At $2.00 per share for K-Swiss (on a $13.00 stock), the abuse by the Board is even more egregious than at The Buckle, where the $3.00 was less than 8% of the stock price at the time of the announcement.
      Does that help answer any questions in any of your analyses?

      • 1 Reply to overvalued_homebuilders
      • I'm new to investing, but I thought the stock would shoot up when they made this div announcement. But it has stayed in $11-12 range. I want to pick some up right now and just sell it on Dec 11th, after qualifying for the div., and making a quick 15-16% in just a month. So why isn't everyone else doing this? What am I missing?

        The only fallback I can think of is if the price dramatically drops on the 11th by more than $2, and I basically lose the money I made on the div. Anything else I should be aware of?

    • What do you mean by "demise" ? K-Swiss will remain an ongoing company, maybe with half its current annual sales revenues and half its current stock market cap, but the company will stay in business.
      I agree with you that the $2 dividend is a strategy which Steve Nichols is using to transfer some money out of the company and to his pocket. Legal. The public may participate, so it is ethical.

    • I really don't get it. I don't know that I've ever seen it happen before. Makes you suspicious for sure...but maybe we shouldn't look a gift horse in the mouth? Beats me...seems too good to be true.