IAAC... Mike I took a look at this stock. It seems like a nice little company. I found a few things that might be a concern,
1. It has very small float and can move quickly either way. Based on the 52 week trading range it is closer to the top than the bottom.
2.The Chairman and CEO combined with his family owns 31% of the company.
3.The company has had a share buy back program in effect for 2 years of $500,000. So far durning tht time they have repurchased only 100,000. I believe this progran ended December 31,1997.
4.I don't think the buyback program was successful in raising the stock price, so they tried paying a 10% dividend to shareholders of record on December 26,1997.
5. The following is in reference to the dividend payment and what might possibly hurting the stock right now.
>>on Nov. 14, 1997, declared a 10% stock dividend for shareholders of record on Dec. 26, 1997 and payable on Jan. 20, 1998. International Assets Holding Corp. presently has approximately 1,407,000 shares outstanding and will increase the total shares outstanding by a maximum of approximately 140,700 additional shares.<<
Mike the way I read that is they are going to increase the number of outstanding share sto pay for the dividend. More shares than they bought back durning the buyback, At least the chairman and CEO will be happy. Shareholders will be paying him 10% on 31% of the shares with more diltution if this is right. What do you think?
Cary |
