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Einstein Noah Restaurant Group, AŞ Message Board

  • dotheunstuck2 dotheunstuck2 Dec 28, 2012 9:50 AM Flag

    #$%$ is the point?

    What is the point to get dividends if the stock price just comes down that amount, then further gets beat up with selling? Makes no sense!

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    • Exactly as supernexus1 said. We all knew it would drop by the dividend amount. I'm not worried at all because i didn't buy the stock just on the dividend. They are a strong company and i'll sell my shares once they recover back up to pre-dividend levels.

      Sentiment: Strong Buy

    • It's common for beginning investors to make the mistake of buying a stock just to get the dividend and then sell after becoming eligible for it.

      Noah has received some significant good news lately by refinancing its debt at a lower rate and increasing cash flow. Last quarter I believe it exceeded earnings estimates and there have been suggestions it may be getting viewed for a possible privatization buyout or merger. First year estimates are around $18 a share and a buyout I believe would bring above $20.

      The fundamentals for the company are the same as they were before the special dividend was announced, so once the fiscal cliff settles and those looking for a quick flip disappear, this should be a great time to buy low and hold for a quick pop.

      In addition, dividends in 2012 are taxed much lower then income and for those who buy and sell in under a years time, their gains would typically be taxed at their current income rate (check with a CPA for your specific tax situation).

      Sentiment: Buy