Re: Dividend --> Earnings--> M&A Announcement
in response to
by
posted on
Feb 21, 2008 08:39AM
lamberts/UVGrad...unfortunatley as long as there is vital information kept from the public review by an NDA they can't buyback shares. Too bad for us as long as we're under this cloak of non-dislcosure. But even without the NDA I think they made a wiser choice to suspend buyback/divy's for awhile till the war-chest is ripe with 100's of millions in cash to make a decent acquisition.
Don't get me wrong I like getting some cash back too, but even a 4 cent divy costs the company around 15 million...and of course you can figure out what any dividend above that would cost us...which basically is stripping us bare of needed cash for M&A purposes. We'd get a bounce fopr sure of round 4 cents on a divy annoucement but as soon as the ex-dividend date hit we'd lose that 4 cents right off the top that very day...short trem rise combined with some cash back might soothe some nerves but other than that divy check in the long scheme of things I'd rather have my cents and a lot more come to me in the form of PPS appreciation with some cash growing in the tills for M&A. JMHO