special dividend?

[js253]

Returning cash to shareholder is always good tool to combat short sellers accusing you of fraud. 1) it proves the existence of cash thereby debunking the short thesis 2) hurting short sellers bottom line, and in this game money is the greatest motivator.

Although, I would imagine if the company were to go down that route, they'd do buy back as opposed to dividend. Thinking selfishly(on the part of management), a large scale buy back not only accomplishes the above two objective. And, it shrinks the float at market price. Should the management contemplate an MBO down the road, there is that much fewer shares they have to buy out with a large premium. So killing two birds with one stone, why not.

[tradestar2012]

buybacks are almost always prefered, but in this case, we're in a blackout period and the company seems unable to buy shares back. If we have to wait until the 20f for a buyback, then my sense is more longs will sell off due to the uncertainty of the 20f results and timing. So the question is, can a dividend be done?

Returning cash to shareholder is always good tool to combat short sellers accusing you of fraud. 1) it proves the existence of cash thereby debunking the short thesis 2) hurting short sellers bottom line, and in this game money is the greatest motivator.

Although, I would imagine if the company were to go down that route, they'd do buy back as opposed to dividend. Thinking selfishly(on the part of management), a large scale buy back not only accomplishes the above two objective. And, it shrinks the float at market price. Should the management contemplate an MBO down the road, there is that much fewer shares they have to buy out with a large premium. So killing two birds with one stone, why not.

[BillNeuburger]

I hope you present this option to the company! I don't know if they can pay a dividend or announce it during a black out period. Black out periods are not all that clear cut because they can issue press releases, and meaningful ones at that. They can't announce a change at the board level though.

They don't seem to grasp the severity of the situation, I don't believe they understand a thing about market dynamics. If they had, they would have done things differently to protect the stock price. Instead they have now backed themselves into a corner and waiting on PWC during a time where they can't even deploy capital to protect the stock.

[joemusic]

The next time a seat on the NQ board of directors becomes available remind me to nominate this forum