that Buckle's price goes down $2.60 or more because a $1.80 extra special dividend isn't declared, a special dividend which automatically makes the share price go down in equal measure upon receipt, and which is already money which belongs to the shareholder anyway, just by virtue of his ineterst in the company if not actually in his pocket (where it is subject to taxation).
Hey, I like the special dividends too. But the market reaction is way out of whack. of course, it had risen perhas in anticipation, but then again, it had fallen to well below fair value as well.
It's not a positive message. Everyone knows dividend tax rates are going up for the rich. This closely held corp. doesn't declare a special dividend?
Could be trouble on the horizon, but I still like the clean balance sheet. What else is going on to limit cash distributions?????? BKE owes the shareholders an explanation. Perhaps their sales forcast is worse than anyone knows.
It really shouldn't make much difference whether or not they announce a special dividend.
Now, if they had a history of overpaying for acquisitions or as Peter Lynch would say "de-worsifying", then I could see the downside. But they don't have such a history; rather, they seem to be very good stewards of company assets and are shareholder friendly.
They seem to be a very well run company and should do well going forward.
I guess it's a buying opportunity, if you like buying high-priced jeans retailers.