What about the revenue decline? They may be making more on their cash than on the business. I am always wary of a dividend yield that is unusually high. Be careful. I’ll pass. Hope I am wrong. Good luck.
Yes for the past 2 years the company was unprofitable and had gain from money market funds and t bills. Because of this dividend was paid out of cash pile instead of from earnings generated.
I think this is starting to change as the company is nearing break even from operating earnings. Still think there is decent margin of safety at this price
But the net earnings of the last three years (which I usually use as a 'benchmark') amounted to an average of only 500k (10y average earnings amount to 280K). I think you are being too optimistic with 2 million.
What about the revenue decline? They may be making more on their cash than on the business. I am always wary of a dividend yield that is unusually high. Be careful. I’ll pass. Hope I am wrong. Good luck.
Yes for the past 2 years the company was unprofitable and had gain from money market funds and t bills. Because of this dividend was paid out of cash pile instead of from earnings generated.
I think this is starting to change as the company is nearing break even from operating earnings. Still think there is decent margin of safety at this price
Great find and thanks for sharing. $12M in retained earnings is good to see. 2025 could be the inflection year - worth a closer look.
Agreed! I’ll share if I find more information
Interesting idea, thanks for sharing!
Appreciate it!
But the net earnings of the last three years (which I usually use as a 'benchmark') amounted to an average of only 500k (10y average earnings amount to 280K). I think you are being too optimistic with 2 million.