" they also mentioned They may receive up to an additional $17.0 million in milestone payments(There can be no assurance)"
Which is not recurring income.
"and may receive royalties of 5 to 10 percent on incremental net sales above a 2009 baseline amount of our former four marketed specialty"
Which, along with all the other drugs except PegIntron, represent only 10% (and shrinking) of royalty income. So how much can 5 to ten percent of a portion of 10% (and shrinking) of net income boost royalty income overall? Well, whatever it is, it's far, far, far less than 10% of current net income.
shpshp4321, I'm not saying this company's a dog; it's not. ENZN is obviously going to generate net royalty income in the future and it's also going to pay out most of that to shareholders. But your wild enthusiasm doesn't fit known facts or management's stated expectations.
"ENZN will pay it's cash that's true but they are gettin more cash Continuously."
Yes, but on a continuously shrinking royalty stream.
"Conservative calculation based only $19m net income!"
Is that really conservative, considering that PegIntron, as of March 31, 2015, accounted for 90% of royalty income and its sales were down 50% from the 1st q of 2014 to the 1st q 2015, following a 23% drop in 2014 PegIntron sales overall? That's a seriously deteriorating trend. With those kinds of run rates, are you absolutely, positively certain that projecting income for the future based on the average of 2013 and 2014 net income is going to be anywhere in the ballpark? Doesn't the accuracy of your projections rely on that trend stopping completely as of three or more months ago? And if it does, how do you factor in the company's statement that the sales decline is expected to continue?
"there was also misunderstanding relating the Special dividend and after NASDAQ made it clear expect a huge PPS jump"
No, there was no misunderstanding by the market at large. Only by individual investors who either haven't seen or paid attention to how large dividends are handled. mejooheeme posted the correct ex-date on this board on July 2nd and I've explained why it's Aug 13 several times since then, the first time on July 4. The NASDAQ posted the Aug 13 ex-date as of last Monday or Tuesday, simply because that's when they would've posted the date whether it fell two days before the record date or one day after the payment date. That's not going to be news next Monday.
Stocks paying extra large dividends often race up in price before the payment date; nothing unusual about it. This one's already doing it. The idea that it will do so even more simply because a few hundred individual investors finally figure out the ex-date will be three weeks later than they first thought is kind of silly, isn't it?
"ENZN has only $1m Liabilities and $38m Assets,Net Assets=$37m. ENZN has $35m in Cash as well"
No, the cash is included in the net asset figure. The most recent 10-K (March 5, 2015) lists only two thing as comprising total assets: $478,000 of "other current assets" and $34,562,000 of cash, for a total of $35,040,000. The difference between that number and your $37 million number is the royalty income since the end of the last fiscal year. ENZN certainly does NOT have $38 million in assets AND another $35 million in cash. Somehow you're counting the cash twice.
"as mentioned before reported a strong earnings and this should Continue"
The company didn't say that should continue. They said exactly the opposite. In the most recent 10-Q the company reported, "The primary source of our royalty revenues is sales of PegIntron, which is marketed by Merck. Royalty revenues from sales of PegIntron by Merck accounted for approximately 90% and 76% of our total royalty revenues for the three months ended March 31, 2015 and 2014."
But the reason that PegIntron increased from 76% to 90 % of the company's royalty revenue was not because sales of PegIntron increased; it was because the sales of everything else went down, overall. And not only did the sale of everything else go down, PegIntron sales went down too -- WAY down. The company further reported, "Merck has announced that its sales of PegIntron in the first quarter of 2015 decreased 50% to $56 million from $112 million in the prior year's comparable period."
So not only did the sales of all royalty products drop, but the one bringing in 90% of ENZN's royalty revenue, PegIntron, went down 50%. And as far as the outlook for the future, the company said, in the very same paragraph, "Royalty revenues from Merck have been declining and this trend is expected to continue."
So how can you say the company "reported strong earning and this should continue" when the company said the exact opposite in the most recent 10-Q?
"if this is the case.no one will sell and you will have only buyers?"
Of course not. People buy and sell for a variety of reasons. Besides, how do you propose that there could possibly be any buyers without sellers?
"what part of my post is hilarious?"
The part where you counsel someone else to "spend a bit more time with your research before making broad statements."
"I very much understand how dividend dates come into play"
No, actually, you don't. Yesterday you said, "any selling will occur after the record date" and I asked you why. You replied, "Some will hold to receive the dividend, and then might bail afterwards." Well, any shareholder of record on July 21 who sells ENZN before Aug 13 will lose the dividend, not receive it.
So you see, itsupfromhere, you don't know how dividend dates work, further, you're not even aware that you don't know how they work, yet you're advising others to "spend a bit more time with your research before making broad statements." THAT'S what's hilarious. It's also just a bit sad I had to explain it.
"I strongly encourage you to spend a bit more time with your research before making broad statements."
That's pretty funny coming from the guy who said on this board yesterday that some shareholders will sell after July 21st because they will have secured the dividend. Hilarious! Have you ever considered taking your own advice?
"you must hold this til 8/13 8/13, otherwise you forfeit your div not only thru 7/21,do i get it right?"
Well, partially. You don't have to hold it before, on or through July 21 because you can buy as late as Aug 12 and get the dividend. And I don't know what your doubling down with "8/13 8/13" is all about. Only one 8/13 is really necessary.
"Cwn, so still wondering, can you sell the open on the 13th to still collect the divi or open on the 14th?"
After I already answered your question, you're still wondering?
"can you sell on the 13th or do you have to wait till the 14th to sell after you collect the divi?"
Yes, if you buy before the 13th, you can sell on the 13th and still get the dividend. Just like with all dividends, you can sell on the ex-date and get the dividend because the ex-date is the first day a stock trades without the right to the dividend.
"Yes you have to purchase by July 21."
No, you don't. You can buy as late as Aug 12 because the ex-date isn't until Aug 13.
itsa1188, even if this dividend followed normal dividend rules, you'd still be wrong because July 21 is the record date, and to be a shareholder of record on the 21st, you'd have to buy no later than July 16 to allow for the three day settlement period of stock trades.
itsa1188, why don't you study up on how dividend dates really work instead of posting baloney?
"I'm wondering what the status of the stock will be following the 21st"
July 21st is meaningless to the status of the stock. Everyone on this board focusing on the record date of the 21st are clearly ignorant of how dividend dates work. If this dividend followed normal dividend rules, which it doesn't, the key date would be July 17, which would've been the ex-dividend date. It is on the ex-dividend date that a stock price reacts to a dividend no longer being available to new buyers. But this dividend, because of its large size, has an ex-dividend date of August 13. So August 13 is when ENZN's price will reflect the dividend no longer being available to new buyers, not July 21. The record date is never the day a stock price adjusts to a dividend.
"CORRECT ME IF WRONG"
"don't you have to be on record 7/21 AND hold until ex-div date 8/13 to get dividend?"
No. You have to buy ENZN before the ex-date and hold it until the ex-date. With the ex-date being Aug 13, you can buy as late as Aug 12.
Because of its size, this dividend follows different rules than normal dividends. Any shareholder of record on July 21 who sells their shares before Aug 13 will also be selling their right to the dividend.
"you need to hold thru 21st"
Say, shpshp4321, with all the details you dug up on this company, how come you don't know that anyone who sells ENZN before the ex-distribution date of August 13th will also be selling their right to the dividend?
"If you owned them on the 8th, witch means you bought them on the 3rd (wait 3 buisness days for trade to settle)Then selling them today you should still get your pypl on the 17th when its released... thats how I understand it.. "
Actually, that's how you misunderstand it. You're overlooking the due bills attached to every sale through July 17.
"So I could sell my EBAY shares today and still get PYPL shares when released because I was a shareholder on the 8th?"
You'll get them, but you'll be obligated to forward them to the buyer of your eBay shares because all EBAY shares sold beginning July 6 through July 17 have due bills attached requiring the PayPal shares to be forwarded to the buyer. This is nothing unusual, as all spinoffs work this way.
If you were still entitled to the PayPal shares, the EBAY price wouldn't still be at the pre-spinoff level.
"Some will hold to receive the dividend, and then might bail afterwards"
But because of the size of this dividend, you have to wait until the day after the payment date before you can sell and keep the dividend, not the day after the record date.
And even if this dividend followed normal dividend rules, which it doesn't, you could sell two days before the record date, not one day after, and still keep the dividend.
Are you sure you've thought this through?
jrstewart is right.
The ex-date takes into account the three day settlement period required to become a shareholder of record on the 10th. That's the only purpose of an ex-date.