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Armanino Foods of Distinction Inc. Message Board

  • mfrealty mfrealty Mar 1, 2013 5:09 PM Flag

    Delayed Dividend Announcement

    All long-time Armanino shareholders out there know that Armanino is very consistent on the timing of earnings and dividend announcements, if one looks back historically.

    Thus, I find it very peculiar that the dividend announcement that normally happens around 2/9/201X never happened. We are now into March.

    Could this mean that there is a possible buy-out being negotiated right now?

    A private equity buyer could be asking Armanino to delay dividend payments until the transaction is over (hypothetically speaking), so that the balance sheet has more cash and the private equity buyer could pay itself a large dividend as soon as the transaction is over.

    After such a great earnings announcement, one would think that they have plenty of extra cash to continue the dividend they have bee paying for nearly a decade, so why the delay in the dividend announcement?

    Does anyone else have any suggestions?

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    • I think that Hotpanera is likely more correct than your theory of a private equity buyer. After all, if the money gets paid out as a dividend, the price paid for the stock should logically be less. There is no reason to delay the dividend.

      On the other hand, the announcement may have been rescheduled not only to bring it in line with the payment date, but also if the board wanted to see better how the first quarter was going before deciding on how much of an increase to approve. That is mere speculation on my part, but I would not be surprised at all to see a dividend increase this time.

    • Divy was announced Feb 10th or 11th except in 2008 it was March 7th, that is also when they announced a 2 for one stock split. I think the delayed announcement IS significant. The last split was explained as aiding "market liquidity". From what I can see AMNF still has a liquidity problem. Some days .04 between the Bid-Ask. The market makers have skipped my buy orders 6 times last year, and again yesterday when I had 2500 at 1.11 and they took 10,000+ @ 1.10 instead. I would not mind going back to penny fractions on buy & sell orders either. We have to remember this company still operates as tho it is just family that owns it, and if keeping the price below $1 helps them keep the "big boys" away then that is what they will probably do. On the other hand I watched the CEO of Kraft a couple weeks ago that said consolidation in the food industry is RAMPANT and accelerating. In any case they are sitting on the divy announcement for good reason in my opinion. There is NO cause for bad reasons here so I am confident of good things to come shortly.

      Sentiment: Buy

    • I doubt that the delayed announcement indicates anything significant. The ex-dividend date in the past has been very late in March. There was no good reason that i can fathom to have announced the dividend 7 or 8 weeks before ex-div. My guess is that they simply adjusted the announcement date to be around 2-3 weeks ahead of ex-div, as is far more typical. I would only get concerned if we get no annoucement by the middle of the month, though I doubt that will happen.

    • I hope that is not the case. I like holding shares of this company. It seems to have great management rooted in a good culture. I’d hate to see it sold.

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