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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (18537)	4/12/2008 8:33:19 PM
From: RockyBalboa	Respond to of 18998

What shall I say? I didn´t follow that mini drama of buying too closely as my main focus was on funancials particularly in the consumer credit area. But there´s one thing I consider a shame and a wilful squandering of shareholder funds: the relocation of the HQ, amongst other questionable expenses. It is noteworthy that the lease term of their new 450k sqft Redwood office expires only in 2021. For quite some time I ve been with a U.S. corporation whose stock is an S&P constituent. I can assure that this company is doing everything to avoid unnecessary or unwarranted costs; every larger investment is thoroughly assessed by a committee and also any relocation of office space faces intense scrutiny. I have been told that this is nothing special, every good corporation is doing it. Secondly, in times where cash is king and access to equity and debt markets costly if not completely barred, the payment of a huge special dividend in the 500M range is alarming; the company will still have a like amount in debt outstanding which they better had paid off with the proceeds from their divestments. Actually they could have called their 500M callable convertible in 2008. This puts the financial stability at stake.