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Message: Dividend --> Earnings--> M&A Announcement

Dividend --> Earnings--> M&A Announcement

posted on Feb 21, 2008 07:40AM

While I haven't been a supporter of another dividend, based on the share price performance, it might be something Turley & the BOD should reconsider as it might be the remedy to the pps free fall.

If they were to announce a dividend of say 2 to 4 cents for shareholders as of March 20th, then that might spark some buying between now and March 20th. Typically, there has been a bit of a sell off after the dividend record date, but if they can also announce that they will have their earnings announcement in the first week of April, that should keep people invested through then, and then a good earnings announcement coupled with some commentary that puts a finite and pending timeframe on an M&A announcement, or simply an M&A announcement shortly (a couple of weeks max) thereafter could be the final juice to put this pps back into a range with a number other than zero before the decimal point.

Obviously, all of this is contingent on there being enough cash from the settlements and new licenses to accomplish this, AND to show a great quarter, but if they were to go through with something like this, the M&A would be a bit easier as it would come at a time when the share price would be elevated, and the use of shares in a deal would be less dilutive or if used in exchange, much more valuable.\

Just a thought on a no news day and a languishing share price down 62% from just 2 months ago. While Turley doesn't control the market, he does have a responsiblity to return value to the shareholders, and he is not impotent in the ability to do that.....are you Jim?

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