So they had $130MM, give or take, to do other things, which is simply incredible for a stock that is valued at less than $800MM. It looks like a big chunk of cash went to pay off payables($230MM) and receivables rose a bit as well($50MM), which accounts for much of the cash. Thus the balance sheet was improved and the book value rose by nearly 8% even after paying their 6% dividend this year.
Combining all cash flow you are receiving with the fact that you are buying the stock for 70% of its book value, makes this stock a strong buy in my opinion. Why it doesn't get more attention is beyond me.
If they keep raising the dividend the stock price will take care of itself. At these prices I wish they were simply paying all cash rather than issuing shares as part of the dividend. Too cheap to be issuing shares now, but I am one who is getting shares, so I suppose my % of the company is not dropping(its still going higher), I just wish it would grow by more.
The fact is the company is so greatly undervalued compared to the rest of the market on several metrics.
Look at this:
Cash+Receivables = $1.74 billion
Debt+Payables = $1.06 billion
Net "cash" = $680 million
If you throw in their current inventory you can add another $310 million, though inventory surely isn't the same as cash.
So for only $742 million and you are getting a company that has almost $1 billion in current net assets, that generates ~$150 million in free cash flow a year.