nice increase! I suspect that 4th quarter earnings will be pretty good. I think the market might also believe this, judging from the late increase in price.
I don't care...I just bought some January 2015 calls (47's) and they were cheap - $.77 (at least in my opinion. I've got lots of room to run on these baby's!!!
imo a special is a possibility - after all, this is now into December and they will have a good idea of how the year is going to end up. If 4th quarter sales are strong, either a div increase will appear, or a special, or possibly both
good point, Moro. Ativo wouldn't have put money into this issue without a thorough look-see at the front end. They are professionals and will do some due diligence before getting in.
I suspect a special - if you look at the earnings and cash flow for the third quarter, they are very strong.; and, the dividend announcement will be around the second week of December. By that time, the BOD should have a pretty good idea of earnings and cash flow for the 4th quarter. If the new products are doing well and cash flow (and earnings) appear to be strong, I would expect the board to (a) increase the regular dividend to $.015 or $.016 and (b) declare a special or announce a further stock buyback. . They are in very good financial shape. Receivables cover almost all current liabilities; cash and their CD's total $.087 per share. Just my opinion, however
I sold some several months ago to "collect" my original cost. I still have over 96k shares and plan to hold on to them for the for-see-able future. I agree that there will be a special at the end of the year (my guess is $.0175); and that the dividend will be raised - $.018 sounds about right. I note they are still buying back shares at a slow but steady pace. I look forward to seeing their 3rd quarter report - particularly their balance sheet. That should be fat! One way to look at this beauty is: I bought at $.35 cents (average), and the dividend was about 4 or 5% at the time. Now, it is 20% (based upon cost). I have a boatload in a Roth IRA, so that is tax FREEEEEE!! I have another boatload in my traditional IRA, and that is tax DEFERRRRRRED!!! It can't get too much better than this, IMO. If they are "cautiously optimistic" for the 4th quarter, I suspect their sales are going well (after all, we are already in the middle of October, and I am sure they are getting on-going sales reports, so they must already have a sense of what's coming down the pike. If sales work out as their "cautious optimistic" expects, I could see $2.25 by the middle of next year. Good luck to all on this baby!!!
Actually, I would expect an earnings report on Thursday or Friday. Last year, the 3rd quarter report was on the 19th of October. That was a Friday. so, if things run true to form, I would expect a report on the 18th, a Friday - even Thursday would be a long shot.
With schwab, if it closes as $16.01 or better, they call it away from you, regardless. I am waiting for a while longer and then looking at $17's. In the mean time, I still get that 6% yield
I have done the same with a few stocks - mostly GE, GLNG and ABX. I have looked at NYCB several times, but can't get a reasonable premium. Another strategy I use is, when the stock reaches a level that I think it can't sustain, I sell a call at roughly 10% higher price. For example, if Seadrill (SDRL) gets to $55 I will sell a $60 or $65 call fairly far out.
this is one of the biggest bargains around. I use dividend reinvestment to fatten up - 10% dividend is nothing to sneeze at. I've owned Ship Finance since the spinoff from Frontline, and have done really well. Just goes to show that market isn't always efficient!!
John Fredriksen owns a boatload (sorry) of this one, Seadrill, Golar and some others. He likes to use other people's money to fund his new-build program and then reap the dividends himself. What astonishes me is that more managers don't copy his style, especially with money this cheap. Also goes to show that business schools don't necessarily teach managers what is good for the shareholders. (just my opinion)