ZSTN is a small-cap company. To a large corporation $40 million is nothing. Large corporations should offer dividends. ZSTN has growing pains--they are growing too fast with their commercial GPS systems and the new Chinese govt mandate. The admin costs can be 50% of the dividend offering too. You see very few small-caps offering dividends and there is a reason for this. I believe ZSTN is using their revenue for growth rather than putting out another secondary offering or exercising the shelf offering. Id rather see ZSTN use their revenue for growth than dilute my shares.
cvdpro: ZSTN's cash is for working capital, not for supporting the stock. But if enough shareholders sell their stock at low prices, ZSTN will probably go private.
Once again, the main reason ZSTN is such a bargain is that Chinese stocks are in a terrible bear market. My plan is to keep buying every 50% drop. This way I will lose no more than double my original investment.
I am listening to Cramer talking about greed and selling. He's a good laugh. His callers have got to be pre-arranged.