Different firms do it different ways.
And even the company has their own DRIP.
Fidelity says : Dividend reinvestments are priced at the average price that the security is purchased by Fidelity.
Fidelity pre-identifies all customers that will be reinvesting their dividend and goes to the market to purchase shares three days prior to the payable date. We purchase as many shares as possible on a best-efforts basis, determine the average share price, and reallocate these shares proportionately to the customers that are reinvesting their dividend. This process typically results in a different reinvestment price than the price that the security is currently trading
Disclosure is the only reason the SEC hasn't shut this company down by now.
Its fairly obvious whats going on here. Its disclosed.
That said, I know they have put out 12 years of false & misleading press releases. Almost all made to sound "material" but none requiring an SEC filing. (Which means they were not material at all)
I am on record as calling him a criminal, a con-man and the company a scam.
I believe that to be 100% true. An any objective observer would agree.
This is a worthless company with a $29 million market cap.
They have no prospect of ever having material revenues let alone earnings. Its all smoke & mirrors.
Its not practical to short it. If it was, it wouldn't have a $29 million market cap.
Anyone think a buyout of Biglari might be on the table ?
As a BH shareholder, Id king of like to see them cash out of some or all of their CBRL position.
But, Biglari might be willing to hang in there for the long term and get control later on.
He will probably live longer than anyone on the board.
John A. Gordon @JohnAGordon · 21m21 minutes ago San Antonio, TX
SNS has added a variety of flavored frech fries for upcharge...why not $MCD $WEN $JACK and others?
Steel wants the company for below fair value. The company, despite board & president changes, wont sell it for what Steel wants to pay. And they also wont do anything to keep the stock from tanking if a deal doesn't happen.
Why, exactly, did we replace the president & pay huge severance charges if nothing changes ?
Apparently they have cash & the outlook is bright. They need to get out & tell the story AND they need to commit to supporting the stock in the open market with a buyback.
If they believe the company is worth $11.40-12.50 or more and they have plenty of liquidity, then they should file a plan to buy shares and then place an order with a broker to buy all the shares they can get at $8.50 or less.
And Don't just announce a buyback & not follow thru. Commit to buying any & all shares below $8.50.
That, at least gives current holders some confidence that they have a little liquidity in the event we want to sell some.
Cant blame anyone for selling but I am holding. Most of my shares were bought at lower prices, I want to defer the gains hopefully for years to come and Im hopeful that some of our concerns will be addressed at the annual meeting april 9th. I continue to be concerned at the LACK of information for those of us unable or unwilling to make it to the annual meeting every year. The LEAST they could do is make a webcast or a transcript available.
Essentially, I see it as those who cant go to the meeting are at an informational disadvantage.
PS, since the rights offering is apparently going to be a yearly thing, I might have to get into the habit of selling a little once a year just so I can participate in the rights offerings without increasing my already large position.
Considering lowering the price for a financial buyer. Possibly to $3-3.5 million. I think they will pay a 5-6% brokerage commission if & when its sold.
Reason being the cost of upkeep.
Im going with $3.25 million as a worst case scenario=3.06 million net=51.5 cents per share.
But, I think they have some cash too. Possibly $1.8 million ? Although they would probably have to keep some set aside in a liquidating trust for so long.
So 27-28.5 cents possibly in cash.
Looks like a reasonable worst case is 78.5 cents, in a year or two.
Im sure not selling at 55 cents.
Growing the company is going to be them merging something into it Id imagine. And that might involve issuing more shares & such.
There is room for sweetheart insider deals. Even though Roberts at least kept them from blatently diluting us.
I thought Roberts owned like 1.5-1.6 million.
So even with the new shares they would need the affirmative vote. (Doing nothing, in a case like this, is not an affirmative vote which explains why they have to hire the callers)
Honestly, mine was in the garbage until I read they were paying per yes vote. I dug it out & filled it in & sent it.
I don't typically vote unless its sending a negative message.
I will feel better when they actually put up the other $38 million and get something in here that starts paying a dividend.
They cant really do that until the vote is approved. I sent my yes vote in the other day just to save the company from having to spend $4.50 per yes vote for someone to call & get my vote by mail.
I would still prefer they NOT do a reverse split. I know all the arguments for one. But the track record of reverse splits is terribly bad overall.
Its as if most of the time they say "we are the 10%" and then 90% of the time they are not.
Dennis Calvert has presided over a PUBLIC company for 12+ years that has no almost no revenue. And millions on losses. They have never even been close to breakeven.
I have watched year after year their materially misleading press releases, most of which can no longer be found. Every press release paints a very different picture than reality does.
I have simply exposed Dennis Calvert for what he is.
Perhaps one shouldn't defraud people for 12+ years if they are going to get butthurt when someone calls them out on it !
He offered me the opportunity to participate in the high interest loans to the company a few years ago when I questioned him on the rates they were paying. So Im ok with him lending money at 6%. Hopefully they wont need the 8-12% loans going forward.
I think back nearly 3 decades ago. I had sworn off debt but found myself in a fairly new business facing an almost risk free opportunity but I needed to borrow to do it. Back then, they didn't have cash advance fees. I drove down to my local sears back when they were part of Discover and walked out with $3000 in cash from my Discover card. My rate was really high...I think 19-22% but rates were higher back then and I never thought I would need lower rate debt so I never worried about getting a credit card with the lowest rate.
Anyway, 4 weeks later, I repaid Discover. I think it might have cost me $55 but I made more than 15 times that. I never ran across another need to borrow at high rates for my business.
Although I was on & off margin debt and maxed out a few times back in the 90s. I never had any stock sold out from me but I had about a dozen or so calls from my broker saying sell something or send us cash.
I think they even broke margin rules for me a handful of times. I had plenty of equity, just much of it was not marginable. And I was doing a lot of trading back then which just isn't profitable anymore.
LOAN, in hindsite, has paid high rates and even to insiders but they offered outsiders the same deals. Ran even offered me his personal guarantee. Frankly, I probably should have loaned them money back then. But buying 10 times more stock that I owned would have been even better.
On day, one year, LOAN is going to have a loan go bad. They cant go forever earning high rates with no risk of loss. It would probably be prudent to accrue a loss reserve. But, on the other hand, why not just pay out as much as they can and if & when they have to reserve something they can lower the dividend for a bit.
His open market buys were immaterial. Not worth mentioning really.
I like the price action. Love being above $4. I guess its trading ex dividend now ?
I probably need to sell out in my taxable account and hold these in my IRA. Afraid to do it here because the market makers and those jumping ahead make it nearly impossible to cross a trade without risk.
Well, the stock is up to $1.38 so you were righter than me.
Id love to see it continue higher. And then big dividends in the future.
Hopefully everyone wins here.
Will be interesting to see what happens here. Since I sold half, I really don't know what Im going to do with the rest of my position. It should be interesting and educational either way.
Part of me thinks enough shares wont tender. Another part thinks enough will and the stock drops afterwards because it gets even thinner than it is now.
If it sounds like Im wishy washy and unwilling to make a big bet either way, that's true.
I currently hold shares of BAMM which was recently around $1.70 per share.
About 9 years ago, the announced a tender offer for 4 million shares at $8.75-$10 per share. The stock went up, the tender failed and years later the stock went much lower
I made a lot of money on BAMM years ago but now Im sitting on a loss after getting back in too soon.
BAMM tried to take itself private at $3.05 per share a few years ago which failed because it was a lowball offer.
But, Id have been better off with the $3.05 a few years ago.
Now it seems their goal is to teach the public market that we should have been happy to accept their lowball offer.
NICK, I think, has more integrity.
For 12+ years he has put out nice sounding press releases that led to 95% value destruction considering the reverse split.
Finally, he got off his duff and sued me spending $435 of shareholder money on a frivolous slapp.
And apparently he cant even afford to serve me.
Let me be 100% clear. You will NOT shut me up. I speak the truth.
Don't forget, I know your balance sheet. You cant afford to take this any further.
Call it off now and save yourself much time & embarrassment.
Im seriously considering a billboard near your house exposing your years of deception.
Do your family & neighbors know your deception ? Do they know your income is based on lies & deception ?
You see Dennis, I don't lie or deceive like you. I have nothing to fear from the truth.
You, on the other hand, DO !