RE: RE: Something Big Coming down the pipe ?coutts struck the nail on the head.
Good dividend companies with a stable outlook have dividend yieldsields yields of about 8 %.
That places Automod in the $2.50 range.
The payout ratio is less than 30 % on their regular dividend of .20 per year.
Even paying out all of their annual cash flows of about $1 per share, they still will have .60 /share in cash remaining.
Look at it from earnings of .50 per share .
At 7.5 times with a regular dividend, they would be a $3.75 stock.
Sure, they will reach an accomodation with GM.
But thats pure gravy.