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Date: January 18, 2007 03:58PM
I read an interesting article this morning in WSJ regarding HMA. It seems that management has decided to combat the possibility of LBO by adding on a larger debt load in order to pay a one time dividend to shareholders of 10 dollars per share payable in March...This seems like a "special situation" to me! Does anyone have any thoughts or analysis to share?
Date: January 27, 2007 12:40AM
I know that there isn't alot to this post...but, I can't get over the one time dividend they're offering. I also can't get over the fact that the market isn't reflecting the announced dividend by upwardly pricing the shares. They're trading at 19-20 per share and offering a 10 dollar dividend. WHAT AM I MISSING HERE? I figure i'm either missing something simple or I'm seeing a ridiculous "special situations" opportunity.
PS If you're wondering about me: I'm a self taught investor who invests primarily for my immediate and extended family. My largest current holdings are BUD, DFC, MCD, and SHLD. Unless something drastic changes, i'll own these for a long time as I don't trade alot. I also own have an outsized portion of my networth in realestate...Land to rentals. The truth is...I just really enjoy the subject matter and look up gurufocus almost daily.
Date: January 28, 2007 02:27PM
Thanks to Asif at Sinletter for his help. The issue with the HMA special dividend is that its essentially just a loan taken out by the company that will reprice the share value accordingly.
Posted by: forestforever (IP Logged)
Date: September 4, 2007 03:39AM
By the way, how does this special divident prevent LBO?