Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (10428)	4/26/2000 9:11:00 AM
From: Grommit	Read Replies (2) \| Respond to of 78497

thank you for ECIL. new topic - F. Ford -- maybe we should kick it around here. I wonder what the implications of their recently announce $20 per share special dividend are? Stock at $55. EPS around $6. Dividend $2. Div yield 3.6%. after the $20 dividend -- (a) Stock drops to $35 theoretically perhaps. (b) EPS drops a bit due to less interest earned -- let's say 10% of $20 = $2 per share lower. But after tax, that reduction might be $1.50 or so. EPS now at $4.00-$4.50. (c) Regular Dividend remains at $2. Yield = $2/$35 = 5.7% If this occurs, I would think that the yield might attract a crowd. So perhaps the price does not drop by the same amount of the special dividend. Opportunity? Just thinking, (and buying) grommit DELIVERING SHAREHOLDER VALUE: On April 14, Ford Motor Company also announced a Shareholder Value Enhancement Plan that offers Ford shareholders new Ford shares and a choice of accepting $20 per share in cash or additional new Ford shares equivalent to the cash value. ``This plan reflects our transformational thinking,'' Nasser said, ``as well as our strong earnings and cash flow. It also underscores management's confidence and our commitment to delivering superior shareholder value over time.''

To: Paul Senior who wrote (10428)	4/26/2000 1:57:00 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78497

For those of you who are into digging or non-concentrated portfolios (hint, hint... ;-))) I'll toss up two value stocks as opposed to my Buffetty bias. ENC and DFS. Brand name collectible businesses with declining revenues. Don't look at PE, and in the case of ENC you need to dig deeper to see if dividend is secure. Good luck Jurgis Disclaimer: I never bought either, and I'm glad I didn't. But Yacktman once held 17% of portfolio in DFS. :-(((