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Berkshire Bancorp Inc. Message Board

  • enzo2464 enzo2464 Aug 7, 2012 7:58 AM Flag

    Dividend

    Why are some on this Board so excited about a dividend, in particular a "Special Dividend". It means nothing to most shareholders other than Mr Marks. I doubt that institutions and hedge funds holding BERK will be pleased, in fact I suspect they will be angry. A dividend just takes value and hand it to Marks. I believe if he were to try that these institutions will fight it. I'm also not sure he will do that as some of these institutions are his friends and they have been holding on for a long while.

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    • operating income $.11
      f. i. t. credit $.12
      total .$.23
      BV $8.72
      Equity:
      Accum Deficit-is this the NOL carryover?
      Other Comp Loss...to be recovered in future years
      ARS unrealized loss-recoverable at end of term??
      Salaries about $10 million a year...can get rid of major part of this.....

    • and keeps adding to income/equity from various "reserves"....
      trying to figure which and how much is left
      Want to venture a guess. Anyone have any idea?

    • What is the alternative you prefer? I am not sure you see excitement about a divedend so much as excitement about something actually (potentially) happening. The other option is that the bank get sold, but if Marx isnt going to do that then what would you prefer be done? A buyback isn't likely to occur given that he already controls 70+% of the bank. So a dividend at least provides some kind of monetization of the holding. It also may give the stock a lift as yield pigs arrive to take advantage of what could be a decent sized dividend. We need to see.

      I am also not sure why you believe institutions and hedge funds would be angry. Why? I think you also overestimate their ability to fight anything. Fight how? There is nothing illegal or inherently wrong about paying out a dividend. In fact, some might argue that traditionally that was what people looked for in an investment.

      I can understand your frustration. I would be interested in hearing what you think the alternatives to a dividend are. Of course let's be clear here too, no dividend has been issued or promised. The only that occurred is that the bank upstreamed money to the holding company. For all we know it's just going to sit there. Although I doubt that. Marx, etc want to monetize things a bit too I would assume.

      • 1 Reply to kraven_the_hunter29
      • Wow! a dialogue.here's my take:
        MM should sell Bank..@$15/sh=about $150million for him (chump change but nice for day's work)..not sure how tax rates impact him next year
        Only option for all shareowners is a sale so that someone will/can invest & make good return. Berk is not doing that; old management is stale being paid for nothing
        With earnings of about $.60/share it does not allow for much of a regular dividend and that would be meaningless to shareholders. A special one-shot dividend is but a bonus to MM. Stock price may go down if Book Value is substantially lowered.
        I truly don't believe the Bank of NY Mellon; Schwab & M3F,Inc who bought shares in June '12 Quarter, and other institutions holding shares for years, are holding/waiting for a "special Dividend" and YES while not illegal there is more to discuss on that point at another time.
        MM can monetize for himself, or for all shareholders including officers of company and some friends in the business. We'll see how he chooses to do that. TIME TO SELL!

 
BERK
8.600.00(0.00%)Sep 22 9:48 AMEDT

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