Today the short sellers began to get the message that the weak hands are gone. Despite the down market and low bid there were no sellers! Volume just dryed up! The smart shorts realized the game was up so they tried to cover. The stupid shorts like Donkey dork jumped in to take their place. Now he spends his day posting lies.
Clearly they have the ability to buy back shares and at today's depressed price that is a better use of cash. I figure they will announce a major buyback program -tens of millions$ multiple quarter length. If the price stays low they cut the share count big time. If the price jumps before they can buy, they will raise the dividend as required by law for BDC.
The company is pretty conservative so they are more likely to put in a floor of $11-12. Most likely not $13 unless they get lots of shares off the market -raising book value.
What is much more likely is that the buyback puts in a floor and the market catches on and bids the shares to a more reasonable yield.
If the shorts keep selling cheap and the company buys the earnings growth will accelerate. If the shorts cover and go away the dividend will be rased to 90% of earnings as required by law. Either way TAXI is a BUY!
Taxi making record profit and now they can buy back shares cheap thanks to stupid short sellers! TAXI used to be a cash machine -now it is a growth machine too!
I figured there would be a short squeeze when TAXI reported much better than expected earnings. I figured the shorts would cover. What I didn't expect was smart shorts covering and buying from DUMB shorts!
The only reason they are not raising the dividend is that buybacks are better at todays depressed price. When price gets back in the teens they can hike the dividend to 30+ cents/quarter.
It should (must) be on edgar within 3 trading days.
For now you can get the numbers from businesswire or DJ stories though your brokers site.
Go to your brokerage account and look at news for TAXI. There is a business wire story titled "Medallion Financial Corp. Reports 2014 Fourth Quarter and Record Full Year Results
9:03 AM ET 2/17/15 | BusinessWire"
At the bottom are the full financials and there is a link to the data direct.
I have it from Etrade but it doesn't paste and the link is secure.
I tried pasting it in a post but it doesn't fit. It's on the bottom of the newswire story. It's $0.33
I have no idea what 0.10 is
I made the change myself and confirmed the laws with my broker. The law is without question, only enforcement...
I am still looking but I think the $0.10 excludes medallion bank among other things. TAXI is a BDC. Medalion bank is a wholly owned subsidiary, an investment, so the results must be listed as 'investment returns'.
TAXI reported 4th quarter 2014 earnings of USD 0.32 per share on 2/17/15.This beat the consensus of USD 0.31 by USD 0.02 of the 2 analysts covering this company.
uber is nothing more than an ap to organize "gypsy cabs". Gypsy cabs are the standard in all third world countries where 'regulation' is nothing more than bribes paid to cops every time they are caught. Uber is trying to make the same thing work in developed countries that have laws against it. Uber is trying to get developed world prices for third world product while sticking the drivers with all the cost and liability.
You are dead right about a generic application. Uber provides NOTHING! This is the perfect application for a pear network like napster. What amazes me more than the low price of TAXI shares is the crazy valuation of Uber. What the hell are they thinking? Have you seen the insanely expensive offices they are building in san fran?
I would like to see some protections for the drivers -solid liability insurance that doesn't screw the driver, clear financial terms including taxes the driver is responsible for, and no abusive loans that uber collects on but drivers are responsible for. uber claims drivers make loads of money but after taxes interest and depreciation they make less than minimum wage while they are risking huge liability -it should be illegal!
Now seems to be the right time to push a short squeeze in TAXI shares. The first thing you need to realize is that the shares that are sold short ARE YOURS if you hold them in a 'MARGIN' account. If you are not buying shares on margin (very few TAXI investors do) then there is no reason for you to hold them in a margin account. It only takes a few seconds to call your broker and have your account status changed. When you change to a 'CASH' account your shares stay in your account -the broker can not make money lending them to the short seller. The broker never pays you any of the interest he gets and ultimately he is risking your shares.
People think that it doesn't matter but I HAVE SEEN MANY COMPANIES SHARES GO UNAVAILABLE FOR SHORTS. That stops the short sellers from manipulating price immediately and it is the common precursor to a short squeeze. At the very least it will cause the short interest price to rise. My understanding is that TAXI cost 7% to short and that was before it started rising. Add in the 10% dividend and it gets costly to short. Reducing the shares available to short will leave the brokers 'naked' which is illegal. When they call around to borrow shares they will tip off their counterparts that there is potential for a squeeze -which institutions read as 'EASY MONEY!' and you double your money as they rush to buy.
Buying shares is a much better use of money. The yield is already so high that it is cited as a caution flag. It is counterproductive to increase the dividend from such a high level.