I agree that APTS can increase the div at 10% per year for many years to come. In addition to 10% div increase, I think, APTS can also deliver 10% annualized capital gains .
Sentiment: Strong Buy
NQ is estimated to earn $0.35 and $0.74 in 2015 and 2016; if that does happened then by De 2016, NQ could be close to $10 per share . Also, business units which may be sold soon could help it to get towards $10 per share.
Sentiment: Strong Buy
To continue to make pay their executives multi million dollar awards, they have to keep paying dividends so they can sell more shares and then use the proceeds from the sell of shares to fund the dividend and pay their executives. Check out their report to see how much they pay their executives. At this rate, some day the company may have to close the doors in the next 3 to4 years and equity may go to under $5 per share. I am staying away from AI ; Feb 2015 was a wake up call from AI about the problems.
AI, book value has dropped from $28 to under $21 in the last 9 months, this is the reason why AI stock is down by 45% this year. Company announcement of buy back of 2 Million shares is just a talk , as there is no time commitment to buy the shares. Also, with heavy losses, AI may not even have liquid cash to buy their shares. With losses at AI , it will be hard for them to continue to pay the current dividend. I think, dividend may get reduced to 35 cents in the next quarter and stock may drop to under $12 per share. I would not invest any new money here until they can show positive earnings and increase in book value. Management continues to have high compensation but shareholders are suffering.
Many biotech stocks are selling at around 20 PE; so is VRX selling at $100 and PE of over 30, attractive at current price of $100. What do you think it is worth?
New high and $12 plus by Dec 2015; APTS has a book value of $17 per share. With dividend of 72 cents per share, the stock needs to rise to $14 per share during the next 12 months.
Now the company has market value of $50,000 and liabilities of over $10 Million.
It will probably close the doors any day and this company will disappear forever along with the loss of over $2 Billion of investor's capital over the last 15 years.
Sentiment: Strong Sell
The reduction in dividend will have to continue and over the next 12 months it may get cut to 0.35 per quarter or about $1.40 per share per year. Also the dividend will all be shown as return of capital as it's book value is going down . AI may trade between $12 and $17 over the next 12 months.
Price of AB depends on AUM.
AUM went down last month because of stock market declines.
If stock market remains at the current level for the next 12 months ( many thin, that market may not recover for 12 months), then AB may trade between $25 to $30 over the next 12 months. At dividend of close to $2 per share over the next 12 months, it is stil a good total return investment at the current level.
May be some large investors are getting out , as they think, dividend may get reduced by 50% or worse gets eliminated. Little confidence in AI to be able to pay $3.40 per year in dividend income. Wait for next 6 months and see what comes out of AI before committing more funds in AI.