Adding a little today to my long held position in Block Drug (BLOCA).
A company I can't really recommend. They buy up old brands (Polident, Lava soap, etc.) and try to rejuvenate them. Also, they're in the business of supplying products to dentists. They are very much family controlled and imo, investors here experience all the problems inherent with such a setup. Especially as many investors (I suspect) question the energy/skill/priorities/abilities of that family. Plus, the stock itself is very thinly traded with a large bid-ask spread.
Buying the stock here, what you get - besides very slow sales growth and no per-share earnings growth, is a 4% (approx) dividend yield, an occasional 3% stock dividend, a stock selling near stated book value and at a three-year low, and as a potential kicker, a substantial interest in a company which has an "innovative new treatment for periodontal disease". (A disease, if you are over age 35, you maybe know about.)
I look for a 50% appreciation within 2 years. Saw it before. Maybe this next time (assuming there is a next time), I'll use my head and actually profit from the stock.
Paul Senior |
