Fred, This is interesting. Your references to, "waste of money" and "throwing away money." Man, the way I look at it, that big pile of cash is MY money. I am an owner of this company and the company is giving me back a portion of my hard-earned profit in cash. This works for me. They are saying, in essence, "You, the owner of this company, know better what to do with your own money than we, your hired managers do." Creative is wisely managing more than technology now, they are managing shareholder perceptions, values and expectations. This is an extremely positive announcement. It not only sends a very positive message to current shareholders, it kicks up the price a little, attracts new income-concious investors and their money managers, and gets us great publicity for something other than sound and video cards, something the "average" investor knows little or nothing about. As a side note you can use your dividend however you want, if you disapprove, use it to buy stock in Aureal, if you approve, use it to reinvest in Creative.
I don't think this is a stupid move at all.
But what the hell do I know.
Mike |
