She owns 25% of this company? She must really like it as its very thinly traded and she would never be able to dispose of her holdings without cratering the price. She has to hope for a much higher stock price more institutional holders and more volume--which has not been here for a decade.
She (and her husband) is one very savvy investor. Go back and check other stocks they have been in and put on your seatbelt for a great ride. EVOL has been a cash machine to ALL shareholders over the past 3 years and for those lucky enough to have bought in at $.25 years ago, it has been a SUPER cash machine. Dupper is GREAT and their market niches are hot. They know how to create shareholder value (and Karen Singer does not get one penny more for her stock or dividends than you or I do, notwithstanding the posts of some moron on this board!)
The wife of the guy who bleeds this company. Her husband is a guy who was nailed for insider trading and has made successful investments in many small telecoms. A couple of years ago Evol sold a piece of the company and they had a *special dividend* to the tune of 23mm or 2.00 a share. Singer owns 2.6mm shares-2.4mm at the time so thats a cool 5mm right there pre tax and likely why theyve kept the divy up. This guy is running the show and taking the cash...thats why it doesnt really matter what the stock price is for him even with a bundle of shares..hes already made his and will continue to make it with dividends this company should have 40-50mm in cash--my goodness the stock would be 5-6$ higher right??? They gave it away. This is why its thinly traded/ stuck in the mud and no institution is buying in...this is a one man operation. This is their personal piggy bank.
Not sure it is such a negative story here. I have been a rather large shareholder for some time and frankly between the dividends and appreciation in share price it's been a very robust return. if you buy after the special divvie down at 6 or so and sell when it gets above $7.50 or so you can really rack up another big take on just a trade approach.
I got all the $ they got so why complain?
The end game is always the big question. Thad has done a fantastic job running the show and has quite a bit of stock riding with us (including open market purchase) that i think shareholders can count him and others in the company on their side.
Time will tell, as always!
Why post a question if you think you know the answer or intend to answer it yourself?
It's not just their personal piggy bank - do dividends not get paid to all shareholders? Anyone can collect more dividends - just buy more shares - there's been plenty of time.
The shares are thinly traded because the number of shares in the float is only 7.6 million.
Nobody is "taking the cash" and the company didn't give anything away. Do shareholders not "own" the company? By owning shares, do you not effectively "own" a portion of the cash the company holds? So long as it's given to all shareholders, what's your problem? Apple keeps $100 billion cash and the shareholders are livid that they should be getting more. Here the company is paying a decent dividend and managing their cash effectively and you seem to be the only one who has a problem with it. Why is that?
You have a very narrow/limited view of things.
As an alternative to your theory, she could likewise:
1. Sit back, collect 4%+ dividend while interest rates are still much lower
2. Be patient as revenues/earnings increase, share price increases, and ultimately company is bought out at a much higher share price
3. If she does ever want to sell some of her shares, larger shareholders frequently conduct private transactions with other funds/institutions or people with money facilitating large block buys/sells so those shares would never change hands in the open market disrupting trading.
Also if they were going to use the cash--which was really quite high usage for a small company--to benefit all shareholders a buyback of 2-3mm shares wouldve been fair. If they bought for example 2.3mm shares for 15mm--the stock price today would be 10.75-11.00 plus they d have an additional 7mm in the bank. Im not even sure how they paid it out--they paid out 22mm but only 45% of the shares had owners. Where is the other 13mm$$$$$$$ ?????