As most analyst have expected for about one year
now the dividend will have to be cut. Based on
earnings the dividend will be cut drastically over time.
An 8% yield at a share price of 22 is very
stock in their own company and the stock continued to go down for years. What do you think all the insider buying in TWI represents?
stock buyback or would you rather they invest
their money in expansion and growth for better long
term returns? What is the status of the lawsuit with
the National Advancement of Crying People(NAACP)?
When management of a company is so worried about
publicity stunts to raise the price of the stock it sends a
clear message. I prefer management that focuses on
operations and earnings. Good company with good earnings and
the price will automatically follow. Clearly this CEO
is more interested in cashing in his 800,000+ shares
at a hefty profit soon.
with more possible bad financial news to come
from PZN and higher debt levels for CRN in additon to
some lawsuit headlines for WHC from Texas there will
be some temporary downward pressure. However, I
believe in the future of private prisons and I believe
WHC is the best run in the world. Two things concern
me with WHC. First the tighter labor market in
addition to congess wanting to increase minimum wage will
directly effect WHC. Second, when looking at the
transactions of WHC building the prisons and then selling them
at a substantial profit to its sister company CPV
(reit). I realize this props up the financial picture for
WHC in the short term but the question is. Now that
CPV has used up ipo money and is now taking on debt,
will WHC still be able to sell the prisons at a
substantial profit to CPV? It almost seems like they are
sacrificing the balance sheet of one company to benefit
another. No question in my mind WHC will emerge as the
world wide dominant leader in private corrections. Just
a few things to consider.
worthless company. I read in fortune where this
CEO has invested through secret companies ect. and
made a bundle of money for himeself but isn't taking
care of this company. Now that we know we have a
worthless CEO and no more tax advantages who would want to
own this stock?
How many other secret shell companies has
management created to line their pockets. This baby is going
down. In default the management walks away with their
personal millions still in tact. This used to be a great
company five years ago.
for management of companies that try and announce
a stupid stock buyback just to please shareholders.
When a company announces a stock buyback they are
really telling the world they are to dumb to find other
places to invest their money for future growth. When
management focuses on playing the shareholder game instead
of solid management, expansion, and earnings then
I'm outta here. My buy order is in at 7.5
If a company can get a better return on its money
by making acquisitions then there is no reason for a
stock buyback. The academic opinion when a company
announces a stock buy back is the company is announcing to
the world that they don't know where they can invest
their money at this time so they will play the stock
holder game of buying back shares. You will remember
that recently ADM announced the board has approved a
significant buy back. However this has more to do with
Andreas family desire for control and less than economics
or shareholder considerations.
Looks good now but in order to grow the debt will start to pile up. Then the dividend drops. The better buy for growth would be the sister company WHC.
Last Fall or early this Spring I remember ADM
donated about 100 million tons of soybeans to CUBA. I
believe ADM was lobbying very hard to convince congress
to allow trade with CUBA. Congress recently failed
to pass legislation that would allow trade with
Cuba. But I guess it was a great tax write off for ADM.
Many of ADM's business depends on the farmers
buying product ect.
Most farmers I know are hurting.
If farmers start going bankrupt it will hurt ADM
because ADM will get stuck with unpaid bills. An
A farmer has FS (growmark company owned by ADM)
spray chemicals on all his fields. Typically the bill
is not paid immediately. The farmer goes bankrupt.
Now the $45,000 chemical bill from FS is not going to
be paid. You say no big deal. Take $45,000X2000
farmers going bankrupt every year for the next few years.
I know some going bankrupt now. There goes ADM's
profits. Just a thought from the heartland.
How many more restaurant chains will these blood sucking NAACP lawyers try and squeeze. Defending against blood sucking lawyers that smell money is very expensive. The company loses either way.