Re: I was expecting...@yohombr... .... Informer
in response to
by
posted on
Feb 29, 2008 07:58AM
The thrust of the post is this: this is a relatively unique company and a relatively unique industry. It is not often when a company will generate millions in profit with essentially no employees and no cost of sales. The problem with the floundering share price appears to me to stem from 2 areas - 1) too many shares outstanding, and 2) indecision about what to do with the millions -- one month its dividends, the next month it is share repurchase, the next month it is acquisition etc.
Yes we have the potential for a mind-boggling quarterly report upcoming. But what if the numbers are less than expected, or what if the settlement is going to be recognized over a long-term? Or, what if this quarterly really is dynamite but then reality sets in that the next quarter cannot repeat so the forward looking numbers might not compare well. You begin to see other reasons then for the share price to continue to languish.
Thus, in order to really jump start the share price (for the long haul) there may be two options, the one that I listed in my prior post about issuing all the income in the form of dividends, and the other: use all the funds to repurchase 100-200 million shares, and then go from there.
Best