Catalist for change is the reason to own CODI. 3 or 4 seemingly simple changes within the aquired companies can result in large payoffs. 1. include management in ownership 2. refine information technologies 3. new uses for products 4. new lines to existing management platforms.
that will increase growth rate and expand value of company based on EBITDA multiple expansion.
1. NEVER believe anything you read on any of these message boards (including this post). 2. Apply equal skepticism to anything that someone who is paid a commission, tells you. 3. CODI is more akin to a growth and income stock. Good dividend. Favorable tax treatment on most of the dividends. Growing NAV from business sales. 4. CODI invests in businesses, ramps them up, then sells them at a profit (as evidenced by this quarter's financials). Dividends should normally come from operations, and cap gains from the sale of businesses. 5. Two or three of the businesses are likely to do poorly in this economy, but if I recall correctly, Massoud has stated a 5-7 year time frame for turning businesses around.
So, as long as cash flow sustains dividend growth, and so long as CODI keeps buying businesses, turning them around and selling them at a profit, we should see both dividend growth and NAV growth.