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+--- Thread: special dividend? (/showthread.php?tid=6859)
special dividend? - tradestar2012 - 06-13-2014
Can NQ do a special dividend? i understand they are in their blackout period, but thats usually for share buybacks. Does anyone know if a special dividend is still doable? They're sitting on $283M in cash and recently sold stakes in NS/FL worth an agregate of $43M. The company is dedicated to unlocking shareholder value. If thats not working, why not return some of it directly to shareholders?
RE: special dividend? - futurevalue - 06-13-2014
Not sure NQ will do that.
FL needs cash to buy game rights. NationSky needs cash to buy cell phones upfront. NQ valut needs cash to sign the contracts with TMT providers.
The AR days are pretty long.
NQ also commited to stock buyback. They can always increase the size of buyback down the road.
Besides, paying dividend now is kind of saying that the growth will slow down.
RE: special dividend? - tradestar2012 - 06-13-2014
I agree with everything you said. But the reality is, the stock is at $7 and change and because they are in a blackout, they cannot complete the buyback until after the 20f is complete. Which might take some time, assuming it gets completed. Everything they have tried to do to create shareholder value has failed. If the 20f is going to take time, they need to provide confidence building measures to keep shareholders vested. They do not need $326M in cash. A special dividend of $120M would be $2/sh to shareholders leaving them with more than enough cash to do whatever they want to do to grow the business.
RE: special dividend? - gaosl11 - 06-13-2014
'tradestar2012' pid='44969' datel Wrote:I agree with everything you said. But the reality is, the stock is at $7 and change and because they are in a blackout, they cannot complete the buyback until after the 20f is complete. Which might take some time, assuming it gets completed. Everything they have tried to do to create shareholder value has failed. If the 20f is going to take time, they need to provide confidence building measures to keep shareholders vested. They do not need $326M in cash. A special dividend of $120M would be $2/sh to shareholders leaving them with more than enough cash to do whatever they want to do to grow the business.
if NQ is really legitmit company as they claimed, then paying divident would be a very stupid movement. They spend quite a lot effort to raise those money, and just because stock price is 7 dollors they need return some of them?
I understand your point, and yes it might helpful to the stock price in the short term like 10% up, which is really nothing in NQ stock's votality. As NQ management team, their focus is company development, not stock price movement. They are focus on releasing 20F and that's the only thing that can help company, not give money away.
RE: special dividend? - futurevalue - 06-13-2014
I guess NQ will try to boost confidence again by announcing new business partners soon. This refers to the last point in NQ's IR blog today.
I very much doubt NQ will do dividend.
RE: special dividend? - tradestar2012 - 06-13-2014
If there is a special dividend, the short seller is responsible for paying the dividend. Also, at a certain point, institutional investors will need to cut their losses. Lastly, if NQ is serious about an IPO for both NS and FL within the next 12-24 months, there will be plenty of opportunities to bring in more cash. The key question for me is if you can do a special dividend during a blackout period. If you can, its one very effective way of creating shareholder value and showing shareholders confidence in the business model.
RE: special dividend? - BillNeuburger - 06-13-2014
I agree with you. I think given the circumstances they should pay a special dividend. They cannot allow for the stock to just go straight down, it's irresponsible. Regardless of focusing on the business, they MUST stabilize the stock price. It's kind of insane to think that's not one of their main responsibilities, especially right now. If PWC needs more time, NQ and shareholders should just wait it out? Give me a break. The only reason short sellers can do what they are doing is they're taking advantage of the situation. As someone said, if they're going to IPO companies they can replenish their cash hoard.
RE: special dividend? - pwalk - 06-13-2014
Special dividend would be nice, but would accomplish nothing but spend cash the company could use for business expansion. Mgmt has always seemed to have a mind set that if they continue to increase revenues (and at some point profits?) and grow the business, that the stock price will take care of itself. They were unprepared for CB and the shorts, and decided to stay the course, ie, continue to concentrate on business, pay little attention to outside noise (such as CB), company has done nothing wrong, so why care about what somebody else says, keep growing the business. In the long term, this course may prove to be the best, but in the short term, it obviously causes a lot of pain for shareholders.
RE: special dividend? - Banco_Central_de_Costa_Rica - 06-13-2014
The shorts were all over this stock yesterday{like a cheap suit} I have no reason to believe they will not continue today. The whole premise of fallowing the short interest at these levels is flawed. The reason being, shorts are playing a calendar game and winning. The short positions that have been laid out the longest get covered periodically then re-shorted. This is why short interest is going up and down. They keep from getting bot in on someone else's time table.
Yesterdays message was nothing to the shorts and the longs already knew the info.
We are a punching bag unless or until 20F.
I am upset with management for not anticipating PWC reluctance to sign off. I would have had someone corresponding with them as soon as Carson wrote his letter to them at the very least!
A special dividend moves the stock and the shorts pay but for how long.... They have destroyed the credibility of NQ short term if not by word by PRICE!
EXPECT MORE TODAY
RE: special dividend? - futurevalue - 06-13-2014
I will just have to buy more till 20F then. Luckly, I still have capital to deploy.