RE: ManagementIf the dividend goes to 10-15% after a cut and the extra money will allow NHC to make a good acquisition I would be all for it. Unless they are able to get the profits back up (which may happen anyways if the 2nd half is strong) I don't think the market will like a 1.20 dividend. Maybe I'm wrong, but I think the market will be upset with whatever the management decides to do with the dividend. If they cut it, the SP will go down, and if the keep it at 1.2, the SP goes down. Any thoughts on this?
If the management is able to tie in some other news with the dividend announcement that would be the best for the SP. For example, let's say management offers some guidance that the 3rd quarter looks strong and thus the dividend will stay at 1.20. Alternatively, if they cut to .60 or .80, and mention that they are looking at a good acquisition that will be better on the SP. I really don't think either of those will happen, but I can hope, can't I?
Still, eventually I think things at Kirby will turn around in the next year IMO. This company is looking really good when the top-line growth kicks in. It would be a situation of No to Low debt, great margins, lots of cash for dividends. I think that a buy and hold for 1-2 years is necessary, as this stock has been put into "show me" mode. Almost all small caps are at stupid values and this one has been lumped into that group.