RE:RE:Dead moneyThanks for some intelligent posts. I don't see SPB screaming higher but could warrant a 10% gain but I don't feel it will fall much below$9.00....for now if ever IMHO
BAM is extremely greedy. 7% ireturn s nothing to them. BPO was issued at about $30...feel free to correct... and they repurchased the shares to take private 30% cheaper. Much like IPL where they bought far below the NAV. BAM are sharks water waiting for the next undervalued takeover.
I don't fault them for this as they have an amazing track record for buying undervalued companies...then spinning them off or incorperating them later at a huge premium. I guess we'll have to wait to see if there is a takeover or not.
In the meantime FCO more than covers the healthy dividend. Penny Dreadfull should do a little more homework about how these companies cover dividends. Dividends are based on free cashlow. Look at many major dividend payers..ENB. TRP, BCE and do a little homework on how dividends are paid....not EPS but FCF per share.
I was very tempted and shoud have bought more shares this morning. I did not. I think the market in general, SP500 and Nasdaq are in stupid territory and propped up by a few Tech stocks. This is looking more like com bubble in the late 1990's. Stupid money is chasing a few bubble stocks. When all the money is chasing a few stocks in one market sector you hope is there is someone more stupid than you to sell to. This nonsense also pulls cash away from low PE dividend stocks.
Maybe if SPB had a press conference saying were going to employ and design their own AI the stock would double...I'm kidding course but that is really how stupid things are now. Much like in the late 1990's you just had to put a .com after your stock name and the price would skyrocket.
I follow a few VERY savy posters on other Boards that have been in the buisness for decades and continue to post that what is going on now with AI stocks can't continue. The problem is that if there is a major correction in those stocks, or recession every stock including SPB...good or bad is going to tank.
To be honest I only hold 3000 shares at a little over $10. I'm glad I didn't buy more because History has proven to me if I buy...the stock is going down...not that it doesn't alays come back :). No one can predict bottoms but it looks for SPB it's like it's about $9.00. Let's hope short term we stay well above $9.00, collect a well covered dividend and wait to see how this plays out.