SAFM declared their $0.50 special dividend on September 18th last year. They increased the regular dividend by $0.02 as well. Will they do the same again this year? They have $8 plus per share in cash and can easily afford a more generous payout. Will Joe put some more heat on the shorts with a bigger special dividend? My bet is they keep the regular dividend safely affordable and make the special dividend richer. Meanwhile the company's ultra efficient production capacity still grows debt free.
I've bought heavily into SAFM on the way down and it is now one of my largest holdings. By averaging down and reinvesting dividends I'm almost even. As the PPS appreciates I will trim my higher cost basis shares. I did the same thing with Apple when it sold off from $700 years ago and it worked wonderfully. Smaller purchase at higher prices and larger numbers of shares on the way down.
Look at how disruptive having razors and other products delivered to your door is to big businesses like Proctor and Gamble. Imagine never having to buy soda, sparkling water or other drinks at the grocery store again. They will be delivered to your door with minimal plastic waste. You make what you want when you want. You choose the ingredients.
I'm pretty sure I've become a bit of a laughingstock here. 5 years of bullish outlook rewarded with all time PPS lows. I don't care. I am still long Soda and made my most recent buy several days ago. I'll average lower for tax purposes if need be, but now own more Soda shares than ever before. We've seen the past but are yet to see the future.
Birnbaum is exiting the Cola segment to make room for Pepsi?
Profit? How about growing the user base and selling more CO2 later? Sodastream needs revenue just as much as profits. At this point Soda can't afford to ignore a single sales channel. Without a user base they are nothing.
How many units can they move on home shopping channels? How many units can they move on Amazon? The future of shopping is the internet. What matters is the right design, healthy and desirable products and the right marketing message. Come on Birnbaum! Get it together!
Burgh, we all know SODA has been mismanaged. But it is still profitable and capable of righting the ship. They also can increase the sales channel through home shopping networks which they foolishly abandoned last year. I'm not a fan of the management, but I'm a fan of the business model and as far as I know it is the only one that works.
Thanks for the Atty update Cold. Tell him not to miss the rally. I was 40% cash now 10% cash. Have been buying heavily. Loading up on 3% plus dividend banks, sold off pipeline businesses and XOM. Also been heavily adding INTC.
Joe could care less about the shorts. I wouldn't disparage the management. I haven't had time to look at the release but suspect massive funding of the bonus pool.
By which I mean that SAFM has been investig hundreds of millions into new plants. When that spending stops or proportionally slows in a few years, the investor returns will be enormous.
Yes, they have been buying back stock. A higher dividend will reward investors. Also, reducing capital expenditures will free up more cash for rewarding investors. Reducing production also helps limit production and will improve chicken prices.
Best of luck RC. I was too busy to capitalize on the downturn this morning. I suspect though that I will have another opportunity. The fear is there and the funds will short on downward momentum. Best.