you're right of course that the structure of TUX adds to the income of both of the winmill principals, but the company as a whole turns a small profit, while it (most likely) increases in underlying value each year due to its land holdings...to me it's a hidden asset, though of course it's also an income provider to the winmills
i guess i see what they have done in running the company as their attempt to maximize the income of the company, figuring that the stock price will take care of itself, as it now has to some degree at least...paying a dividend would add expenses again, and might just as easily be seen by shareholders as them paying themselves, since the senior winmill owns 10% of the shares himself
also, using their cash on hand to prop up the stock price, by retiring shares and/or paying a dividend, would give them less cash to invest, thereby also lowering their potential to earn profits...again, if they can execute the business plan, which is to invest that cash and earn above market returns, the stock price will eventually reflect their success
as i noted, this certainly hasn't been one of my more efficient investments, as i've only now finally gained about 30% in a year and a half, after being in the red for most of that time, but i feel like they have gone along doing fairly well for their shareholders, even though the stock price has been depressed ever since the delisting announcement
thank you for your reply |
