They have a lot of homes on back log it should move if not I think it is a dead issue been in it for many years and every thing looks as good as it can be. What next,any ideas
One class I didn't miss (and apparently I
should've dragged you with me) was Economics
Don't tell me there's no stock to buy. For the right
price, the whole float would become
Why are you deducting institutional holdings? Did
they tell you they wouldn't sell at any price?
Too bad our stock doesn't have as much action as
this board has had the last few days. I naturally do
not like fallow money, but I can't remember when all
of my stocks moved up for quarters on end. So I'm
willing to put up with no stock-price movement as long as
the company continues to perform. Our day will come,
soon enough for me but perhaps not for you.
You state that management can't buy back stock
because it will increase the lack of liquidity, however,
management just stated in the last cc that they repurchased
shares, and a fairly sizable amount at that. One would
have thought this would have increased the price due
to illiquity, but alas, the repurchases haven't
caused any movement. I'ld be happy for MTH to repurchase
all of the shares (assuming continued share price is
under book value) and be left as the only
non-institutional shareholder. At that point, MTH can then start
paying me dividends or sell the company.
one for repurchasing shares for the sake of
repurchasing. If the price jumps to above book value, which I
consider a fair value for this stock, then start paying me
dividends. For now, buy on the cheap.
must have been punctuated with a number
missed elementary classes. Especially the class
they point out that you must have stock
to buy when
you initiate a buy-back program.
As it is this
stock is quite illiquid. Note
the total o/s is 5.4mm
shares,of which the float is 2.8mm. Deduct institutional
holdings of apprx. 952k shares and you have 1,848,000
shares available for a buy-back. No one is buying this
stock, there is only selling. Mgmt. can't buy back stock
because it will only increase the lack of liquidity. Next
, note how the excellent earnings record has failed
to generate an increase in buying interest. At
times earnings an increase in eps will only lower the
Now, what would it cost to fund a $.30 per
qtr dividend? 5.4mm times $.30 = $1,620,000. (An
advertising expense to attract new investors.)
are you really willing to have your hard-earned money
lay fallow qtr after qtr?
I still can't agree with you about a dividend. I
don't think this builder is going to be a div payer of
any consequence for a long time. But I do think that
we'll benefit by the growth of this relatively small
builder to a much bigger one. Today's markets just don't
favor this kind of stock, but I'm hoping that
tomorrow's markets will be more favorable. I've got several
big div paying stocks, but my real winners are those
that pay no or small dividends. I think I'll just tuck
this one away for awhile.
Psusong is right.
Boboly, he/she is
providing the b-school version of how to replace a dividend
while allowing shareholders who don't need income to
avoid the penalties of double taxation.
will (must) raise the stock price. A $1 million
buyback is identical to a $1 million dividend. If you
seek income, you sell as many shares as you wish to
duplicate the dividend you want to receive. I don't seek
income, so I continue to hold...