First and foremost - the div rate of 8.5% is now safe. I hope they do stock buyback - enough of it so that they double the div next year. I don't mind holding this stock forever and be a perpetual cash generator. These are the type of stock I love. Why sell and look for another one that could be a winner or loser. I like the management here too!
Sentiment: Strong Buy
Excellent analysis - I disagree with the 25% part - it is more like 10%. I am planning to sell 50% when the stock reaches 16 - which I expect in the next 6 months (if there are no additional deals such as increased dividend or major stock buyback announcement). I can afford to be very very patient - thanks to dividends - and now it is virtually guaranteed given this deal. Remember - this deal is only Electronic part of the platform and BGCP continues to hold the rights to the plat form and can come back and compete in 3 years!
This is closest to free money one can get! I had this same feeling when BRK.B hit $70 about a year ago.
It is just a matter of hedge funds sniffing the value from this deal - and we will see inflow of cash!
Sentiment: Strong Buy
Wondering why people are selling?
Sentiment: Strong Buy
After hours - BGCP is trading at 5.48.
Just looking at dividends, we should expect 0.14 for the next quarter. There are no plans of distributing $750 mil, though we may get share buyback or additional investments in future and is not included in the 0.14.
So, we can expect about 0.56 div on annual basis - still 11% at the current after hour share price - and now with almost ZERO risk. Bought some more at 5.45.
This monetization is awesome unlocking of value for us - the existing shareholders - waiting patiently - and enjoying 10+% div for a while now.
If we assume 10% of company (I know it is only 6%) unlocking $2.50 (assuming 300 mil shares), we can expect the stock to trade easily around $25 to $30, still have 2+% dividend that increase over time, probably cash of $4 per share. Won't be surprised to see additional asset purchases to increase income, dividend and book value!!! Wow! rarely held a stock with this much value and this much committed management!
Sentiment: Strong Buy
Where is the damn board of directors?
CEO makes way too much in salary for a company of this size. He should have more equity and align interest with rest of the shareholders!
Good luck longs! Stocks like LUK are better buy.
Not much. Just 10,000 shares. So, I still have ways to go with loading up on this one. Contrary to popular belief, I actually like the management that deals with problems squarely. As I said, I have the patience of a mule. I did that with GTN and got handsomely rewarded with more than 200% return in less than a year. Would like all the day traders and short timers to sell and go away and let the management do its job of growing the company at 40% rate.
cool. Bought some at 2.28. Will buy more at 2 and 1.5 - Planning to hold for a long time... This will go back to 10 in 2 to 3 years as the transition year (2013) passes. I am patient!
Options for 2015 and 2014 seems to be very cheap, should go up on buy backs - but - you lose dividends, One of few tech trading below book - Some news letter compared this to IBM of 1993 and it got got rescued as they changed their business model from hardware to Services!!
Sentiment: Strong Buy
Good for him and good for us. The lower the stock moves, the more are chances of byubacks and stock splits.