Didn't realize they raised the bank line another $30M. I just don't care for the management of CREAF. They're scrambling. Sure they got a hit product- a commodotized hit product. Think about DVD players. You can buy them anywhere for $39-$49. That's going to happen to MP3 players in time. That means eroding margins. And there is no technological barrier for any larger player who wanted in on this market.
First off there is nothing wrong with a dividend special or not. It went to all shareholders, not just management.
Second, if they felt a need to borrow $145M for the ramp up, then even if they had not paid the dividend, they still would have had to borrow $100M.
Third, did you ever consider that they might see sales ramping up to the point that this will be a very short term loan, and with rates only going up, it might have made sense to take advantage of the low rate while it exits.
Done in an environement of shrinking sales, I would have questions about these activities for sure, but in a time of booming sales growth, issues like these don't really matter that much. After all, sales for the quarter alone were over $300M.
If sales plunge then, these will have been very ill-advised moves, however, if sales continue to grow, then the dividend / loan issue is a non-issue. Only time will tell.
It was a special dividend, not a normal quarterly dividend. The special dividend came from the sale of SGTL stock. Why not put that on your balance sheet and use it for ramping up. Why give it away and then go out and seek to borrow $145M? Explain that one - you can't. That doesn't bother you - okay. Keep your CREAF stock and the shenanigans of management. MSFT - look at their stock performance. Enough said.
And exactly what would not taking that dividend do for sales?
It would simply make a paper differenct on the profit number that they reported. The point is that they actually made the money regardless of how they decided to spend it. And what's wrong with a dividend, MSFT pays one now also.
Unless you want to make the case that management wants to get some cash out while things are going well because they know it wont' continue. But that's nothing but speculation. So far you have not given any evidence for anything like that. I'm not anticipating you doing so either. Prove me wrong about that, and maybe I'll listen.
If anything, management is ramping up production. That does not sound like a dim view of the future on their part.
ouch, it sounds as if small dick is angry, let me guess, you don't have a small penis it's around 10 to 12 inches right depending whether you made a few dollars on the market, ha ha go back to class little boy the teacher needs her apple and you desperatley need an education you
Jerkoff - can't answer any of my questions. Your head is up your mother's ass because you don't know
jman - lurk mode for sure
As all investors have heard over and over on every prospectus in existance:
"Past returns are no guarantee of future results".
Simple, but true.
You know, no rookie QB has ever won a conference championship game either. Do you think that "never happened before" is about to fall by the wayside soon?
Okay brillant stockpickers - you had your fun and day in the sun.
Question - NAME ME ONE COMPANY IN SINGAPORE THAT HAS PARTICIPATED IN THE GREAT BULL RUN OF THE LAST 2 YEARS? BETCHA YOU CAN'T. I have asked this question in several posts. NO RESPONSE. YOu know why - because you can't name any. I thought so.
Singapore stocks are a very poor way to play the market.
CREAF is in a commodotized business with looming competition from much stronger companies with a helluva lot more resources.
Technical - gap down, stochastic crossover to the downside, etc. Enough said.
Is there some kind of a curse on Singapore that prevents any companies located there from ever being successful? Maybe they should move their offices to Hong Kong or Tokyo?
Hmmm this is an angle I've never considered.
I've heard people say something like this when they say wide receivers from the Univ of Fla are always busts in the pros. Something in the water down there?