out the price action. I am buying more at this level.The company has a strong capacity and they are keeping the pipeline full. It appears that many investors were actually looking at this as a dividend play. At least more than I thought. I am looking at it as a capital gains play . The second wing of the RE development is just now getting started. Big future. Day traders ? I don't know . Long term very strong.
I wish I could forecast that with a high degree of confidence. The management will be soon posting a RE Development Strategy on their web site. I am confident that it will be accreative to earnings over the long term and will also further improve an excellent Balance Sheet. Keep in mind there is currently no debt on the books. There is room to put a fair amount of debt on as an additional power tool to maximize long term value of the enterprise. It does not take much imagination or vision to see a positive development of around on the conservative metric side of $5 billion in assets and returning 12-15% a year on that segment. Frankly I expect better but that would be good enough to drive an exceptional stock value. Taking the dividend down was smart and in fact elimination of it with a strategic plan for the business being presented to shareholders would have been perfect in my mind. I have a number for the stock in mind but it is based on this imagined scenario that I outlined along with nice growth from the electronics business which is growing and I expect it to continue to grow as the demand for improved products that require key components that this factory can produce will be excellent but remain competitive. The management knows how to control cost and that is the real key in this business along with quality. Margins are reducing but a low cost producer can always make money. This is a table pounding buy. The market in general is pulling back and we have a high beta factor currently. I do expect over time to see the RE smooth that a bit. Good luck. I am buying more at this level.