A dividend would cause the shorts to reduce their position, as they'd have to cough up some $$ on a quarterly basis. Now, their short position costs them nothing. Make those shorts pay. Yes, let's see a dividend paid quarterly.
Actually that idea that the shorts would get hurt with a dividend is a fallacy. If the stock is at $20 and they pay a .50 dividend, the stock will drop to $19.50 on ex-dividend. So while the shorts pay a 50 cent dividend, they make up for it with a 50 cent drop in the stock.
We've now seen the share price drop from $23 to in the mid-$20's. We're likely to see dips under $20 this month. A dividend would also support the price of the shares, and make those shorts cover some of their shares. I'm also with you!
I would rather see them buy BOLT or IO to get them into underwater siesmic in order to diversify their business. Right now, all their eggs are in one basket and with fracking......well you all know that issue.
Based on the price this morning, I say it is worth about 19.45. It is what it is. Nobody here made the assumption that maybe the fleets might be idle for part of the year or that maybe contract rates drop like a rock because of compettion. At best I see 22 by yearend and I won't add to my position until it comes back to 16-17.
Strong growth stocks in there infancy should neither pay a dividend nor buy back shares--they should use their cash to continue to grow--and that is exactly what CJES is doing. Wait until they establish business in the Bakken and Utica, Wait until NG gets a break and the Marcellus presents new opps. Then, if their valuation is still low I can see considering both dividends and buybacks. Until then, I would rather they deploy capital looking for new business and continued growth. If you want dividends and buybacks then SLB or HAL might be more your cup-of-tea.
I don't - I want them to buy back stock and save me the taxable event.
Each share that is bought is like investing that money into a 20% return investment based on the the $4 in earnings and $20 stock price.
I would just use the dividend and buy more shares, but would have to pay 15% taxes on it first.