That's about right. I made a great deal of money on Dendreon after FDA approval. Kept about 20% of it, and got hit hard by the $20/sh loss in Aug. 2011, and got out at $10. In regards to litigation, I filed my losses in the last class action and got only a tiny fraction of my losses back. These guys on the board settle for chicken__t with the attorneys, and the shareholders get chicken__t in return!!
Let's take a different approach on this. Does it not bother you that we have acquired so many of these companies and have not been able to make them a success, at least from the standpoint of their impact on the stock? When you are still working at P&G, with a nice income, sitting on lots of Profit Sharing and perhaps options, it is easy to be satisfied with things. That changes after you retire, must diversify, and need more yield than a 3% dividend.
I was around for many of the acquisitions, the marketing "pitches" to mgt, and internal developments(Pringles and others), on my original list of companies which have been sold (Folgers, Millstone, IAMs, Pringles, etc). it is disheartening to see Smuckers, Kellogs, etc. all touting how the very same revenue and profits are now helping their stocks.
You don't want a bigger dividend because you have to pay taxes on it? Making investment decisions, not taking some profits, etc. because you must pay taxes is a fools logic. I know plenty of investors who were sitting on huge profits in 2001, 2008, and didn't sell to avoid taxes. I guess it's good to be rich on paper, rather than give Ceaser his 20% in taxes. Plenty of them must have felt much better being 90% poorer after the crashes..... I'll take the dividend and pay the tax. Yes, like buybacks, this deal gives us a bigger share of P&G. Many company stocks do not move up after buybacks as the market just offsets it with a lower multiple. Did you notice how the stock moved after the Duracell announcement? Finally, I have diversified quite a bit out of P&G stock, and those investments have done much better. I think you'll admit that this wasn't the best decade for P&G stock for the ordinary investor unless the 3% dividend is you standard of happiness, your a retiree 10s of 1000s of shares.
Folgers, Millstone, Pringles, IAMS, Duracell, can't remember if there were more......Reverse Morris Trusts, the opportunity to exchange for another stock (I should have exchanged all P&G possible for Smuckers stock!!). This may be tax advantage for the company, but the shareholders should have gotten special dividends. We buy some of these companies at high prices and sell them low. Everyone of the marketing gurus who talked the company into buying were promoted, I guarantee that. Shareholders are left holding the bag.
Of course they don't want to pay retail inestors a dividend. But, notice that the board is NEVER satisfied with buybacks for themselves like retail investors are supposed to be. Check Insider Transactions over the last few years. After the buybacks, they dilute ad hand themselves 10,000-50,000 shares at a time at $0 to $5/sh cost called "incentive options". Wow....with 10,000 free shares, today you're instantly $180,000 richer before you walk into your office!! A real incentive option is given at current price, then you work hard to get it up from there. These ultra cheap options are like candy to them. Check insider transactioins and look at the option excercises and sales over the last year, even just a few weeks after Ferguson.....amazing displays of PATIENCE like they expect of us!! Finally,, check CNBC's discussion of buybacks by Kevin O'Leary who is a way better investor/trader than anyone here. Buybacks are for suckers....see IBM and Cisco.
There were several well known investors and analysts on CNBC this week discussing the virtures or downside of buybacks. Nearly all agreed that the primary beneficaries are the boards because they buyback stock and follow it with dilution/stock issuance to hand themselves 100s of thousands of free or discounted shares. Cisco did this for years while handing its executives gobs of free shares. Like IBM, Cisco is a fraction of what it was during the buybacks. I'll take a dividend.
I hope you are right. I've been feasting on lower prices after earnings for years, and when it gets to $18, I'm always expecting more, but mgt finds a way to screw it up. With 11,000 shares, I'm certainly hopeful that you are right and the stock runs to $20, but I always sell calls on 30% of my holdings and have never regretted it. I was fairly disgusted when the COO sold at $16 about a week after Ferguson, then the CEO dumped at $17.91 about a wk later. So, I've gotten smarter about Taser over the years, and taken in profits or call money when things feel "exuberant". Taser has always given me a chance to buy back lower, sorry to say that. Again, let's hope for the best.
you would think that the forecast for future quarters would be good given all the orders that they are lining up. But, we don't know the profit margins and Taser's R&D investment (see what happened to Facebook stock yesterday after reporting monster earnings but forecasted high future investment). I will sell some out of the money January calls this afternoon. If the stock rises, I can always buy them back or let them expire. If it goes down, at least there is cash is in my pocket.
One way to navigate through these "sell on the news" events is to sell long calls when everyone is exuberant. A few days ago, I got $8-9$/share for mid-2015 strike prices of $82.50 and $85.00. With a few hundered or a thousand shares, that puts a lot of cash in your pocket, and you can sleep easily through the night suring these selloffs. Facebook will go back up, but in the meantime, I can keep all the call money and let it expire, or if they calls get cheap enough, buy em' back and do it again on the next runup. You make money either way.
With Ms. Mayer now "persona non grata" with the investment community, I think they should let CFO Ken Goldman make some comments. He is a wise old sage, and if he instilled some confidence regarding their use of their new found Alibaba capital, the stock would pop. I've never seen such a rapid fall from grace for a CEO. I'm not sure Mayer has done a bad job, but she does seem to have a weakness, too much admiration of "smart" people, overrewarding them i.e. Tumbler CEO, and especially Henrique De Castro walked out the door with a boatload of $$ for what?. Such a rapid loss of trust I've never seen before.
As one guy commented after the Barron's "JCP, Curb Your Enthusiasm" article, this is a classic hedge fund tag team takedown of JCP before their Analyst Day. First Goldman, then Barrons, Belus Capital, and of course, The Street's followup with "Why JCP is Falling Today"!! It's all aimed at killing any potential good news before it's out. They are flying off the rope corners right on to Mike Ullman's head before he even gets in the ring. This is why many investors think the market is a rigged casino.
It's only a $10-$20 million dollar investment in what some say is a company, Snapchat, potentially worth $10 billion. However, the media likes to fan the flames of concern over Marissa's spending by acting like Yahoo is buying Snapchat for $10 billion. These hedgies have the power of the pen, and the complicit media is always there to help.
They've already done 30 million in buybacks, 19 MM reported in June quarterly report, and probably the rest when it fell to $10.50 in July. . Is it in your wallet...all that "cash" returned to shareholders? Nope, stock falling $.50 - $1 per day and the only full wallets are in the execs pockets who shamefully sold their cheap $4 options "on the news" when it went up. Long and disgusted. Great products, lousy stock and management.
Please translate your comment. I'm long, but are you happy with this action at $15+/share? We were at $20 earlier in the year without the Ferguson opportunity.
Long Taser, but really disappointed in the stock action of late. In May, the company announced $30 million in buybacks. In the june quarterly report, they showed that $19 million were spent on buybacks. Given that the stock dropped to $10.50 about a month later, one might assume, that the last $11 million was spent there. I wrote IR about that, and we must wait til the next report to find out. Given that, I wonder where the stock would have gone without Ferguson, MO. We'll never know, but it rose to $18 (where our CEO sold over 200,000 shares, and the COO sold 20,000 at $16). Sorry to be cynical, but that always shows confidence to the market!! Given the largest wearable camera pportunity ever for the company post Ferguson, you would think these guys would be buying vs. selling, but no, it's like a candy store for them as they issue free or cheap options to each other. Once I saw the insider sales, I did sell $18 January calls and took in some cash. With the stock at only $15, that was a good decision as I can now buy them back much cheaper, but I'd rather have seen the stock go up. Disgusted and wish an activist would come in of someone take them private. I'll take $20/sh and be gone.
As I said, we own 13,000 shares of JCP, of course my wife is going to comment on what she sees when shopping at JCP. She also bought stuff in Dillards and simply didn't see the same lines. We're not imagining seeing 10 or more people in cash register lines at JCP. Go shopping yourself instead of being short behind a computer screen. Of course, shorts have never spread bad rumors or skewed their thoughts. Ever heard of an analyst Brian Sozzi, once very bearish on JCP, who went around in late 2013 posting the worst photographs of JCP interiors all over the web? Nothing biased about that is there? However, he's got religion now going from bear to bull on JCP. You can go into a Home Depot when they are doing inventory or stocking and take pictures like that too....stuff laying around, disorderly. Sometimes you gotta let go of your position and see the light. I'm up about $30,000 on JCP, how about you?
Didn't I say my wife also went into Dillards as well? I go to the same mall for mens clothes, and I shop at Macys, Dillards, and JC Penney. I hate to say it again because I can tell that your short position is keeping you from listening, but the lines are simply always longer at JC Penney. Do you want me to lie? I'm in for 13,000 shares, now at an average of $8.10/sh. I did sell Jan $13 calls on 3000 shares to take in some cash, but other than that I'm long. Has your short position made any money near that?