Mike,
< I look at it, that big pile of cash is MY money.>
Actually, the pile is all of our money and in this case the shareholders as a group (via a vote) will decide what to do with the money. Obviously, with Sim's support we know how that vote is going to go. I would much rather see the company invest the money in growing the business.
<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.">
Damn, what kind of a message is that to send?? When I invest in a company it is because I believe that the management and workers can grow the value of my investment, i.e. increase the value of the company. I bought CREAF as a growth stock not as an income generating investment. To me what they are saying is "hey, we tried but we don't know how to grow this business significantly. We are a value income generating stock and will never be a growth stock. Therefore, we will just plan on growing the business 5-10% each year and payout any earnings in dividends".
<This is an extremely positive announcement.>
I guess beauty truly is in the eye of the beholder or in this case the stock-holder. With so many bargains in the industry, I think they could have spent the money consolidating and planning for the future.
<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.>
True, but again I am invested in CREAF because I think there is potential for significant growth (i.e. capital appreciate). Trading potential growth (e.g. not as much cash for R&D or acquisitions) for periodic income payouts has many implications including tax implications (at least in the US). You're right I could take my dividend and invest it back into CREAF but keep in mind I will have to pay taxes on this amount.
As a long time investor and supporter of CREAF I don't like this one bit. I see it as a short term gimmick.
Oh well, let's see how this plays out.
FF |
