Thanks to Phil Cohen( Madison partners) and his ever increasing annual special dividend, the stock continues to sell off. The analyst and institutional investors are sick of the increasing payment and realistically Cohen hasnt added any Value at all this past year to warrant a payment, much less an increase. Either were in for a big surprise on the upside or perhaps were in for a big surprise on the downside. Maybe hes thinking this will be the last big payment for a while.I'm still positive about the business, however It does concern me what the controlling shareholder could do in the future which potentially could negatively impact the stock with his actions as it has this past couple of weeks.
Just an FYI, when I was describing my stock position to an anti-PDL person, he said something interesting: "If a company is willing to exact those types of fees from their customers, then I would be leary of what they would do to their shareholders as well"...
PDL and pawn fees are NOT extortionate (as long as the loans aren't rolled over). They are disclosed ahead of time, too. That's a lot better than I could say about the parallel services from banks. Most (all?) of the big PDL companies have caught on that rollovers lead to defaults (and political heat), so they've set their credit standards to limit them.
Now about Mr Cohen's money. DON'T call it a special dividend; that would be unlawful ;-) He claims to provide what amounts to investment banking services, and to be sure, the Cash Converters fiasco used a lot of those, if unsuccessfully in the end. And it appears that management anticipates using more such services. When (if?) it comes time to sue the directors, I'll be the peasant with a torch AND a pitchfork. That time hasn't come.