Seriously though.. Interesting. Very cool for those that own the stock and are long.
Quite a few other companies doing the one-time dividend or accelerating their Q1 dividends into December this year for tax reasons, of course. HAST isn't alone. The one-time dividends don't make a ton of sense to me personally unless you have a ton of cash (APPLE!?). For HAST, which isn't exactly a cash cow, $3.5m out the door, and the stock price will drop back down after it pays. Yes, good for those shareholders, but little advantage to the company itself in the long-run. Are they acknowledging that they have no opportunity to invest $3.5m in their business to improve the stock by $0.35?
The piece that bothers me, of course... is the fact that it doesn't help the company in the long-run. You do realize the #1 shareholder is the CEO, so the company basically just gave him $800k. I dunno.. Doesn't seem like he deserves that...seems like that cash would be better invested into the business.
(What a awesome hit for NECA though!! They have bought in at $2 or less over the last 12 months... a nice 17% return for the year!!)
This dividend is a gesture to let faithful investors know that the company cares about their shareholders. Many companies could care less. As an example of why a company would do this-- I, along with others, have stuck by the company, and this event will be a huge gain for us. I am not a relative but a percentage shareholder--smaller than NECA. I don't agree with those of you who think that this is an unwise move. It's good and ethical business. Now--As all of you have pointed out, in criticism of him, Marmaduke has been reducing his holdings for quite some time now. Everyone says he's ditching his company. But if a big dividend was in the future, and he obviously knew about it, selling off shares is the right thing to do, especially since--and not a SINGLE person here seems to get this-- during the share buyback someone like me ended up with a BIGGER slice of ownership in company as shares were taken off the market. Fewer slices of the pie, the bigger the pieces. My share of the company, for example, has grown by about 1% over the years. So how much of the company has Marmaduke REALLY ditched? Marmaduke is not participating in any sort of evil money grab. Quite the opposite. I am certain that he is doing his best for his long term shareholders. Thank you, John Marmaduke et al. Appreciate it.
Agree. It is simply a onetime bounce though the 2 cents a share divy while miniscule will carry on.
They could have bought back well over a million shares with the same cash and forced a major short squeeze. And in the process they could have put a floor price on the stock of 2.50 a share for basically forever.