tag:blogger.com,1999:blog-1527840491496268397.post1769642859283106097..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: More Thoughts About Conrad Industries Special Dividend ($CNRD)Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1527840491496268397.post-9978968558204904562012-12-17T12:01:29.420-07:002012-12-17T12:01:29.420-07:00They could be accumulating a fairly large number o...They could be accumulating a fairly large number of shares right now. <br /><br />Average volume this quarter has been around 5k shares/day. Hopefully they were buying during the late October slump. <br /><br />You're right that it's acceptable to do the dividend if they are simultaneously buying back shares as fast as they can. <br /><br />However, if the fourth quarter use of cash was a dividend instead of a buyback, then that's inept.<br /><br />Adib raises a good point about the BP settlement. Maybe they are pretty confident about that and have decided to dividend that money out in advance?CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-89972825778195933272012-12-17T05:18:04.830-07:002012-12-17T05:18:04.830-07:00I disagree that it's a misallocation of capita...I disagree that it's a misallocation of capital. They can't just buy more stock in a blink of the eye: liquidity is very low and cash is coming in faster than they can spend on share buybacks.Alpha Vulturehttps://www.blogger.com/profile/11713888602173836514noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-59551926462694919512012-12-17T00:58:21.973-07:002012-12-17T00:58:21.973-07:00CNRD is also likely to receieve $2-$3 per share in...CNRD is also likely to receieve $2-$3 per share in cash from the BP Spill settlement program. So their cash levels will be back. Just that the dividend would have been taxed higher next year..Adibhttps://www.blogger.com/profile/16189612876691941845noreply@blogger.com