It could actually afford to pay 2X its current dividend....just count that bank loan pay down as an xtra dividend....because it is a 'clear dividend reinvestment'
I have been involved in stocks like this in the past...
The most frustrating thing is the static or steading rising price........but the greatest opportunity is the static price.....
Because, you could literally hold the stock for 5 years and it will sit in a seemingly 'patterned' price range.....and then in a short space of time........the puppy will move and move and move... and as an investor......your entire 'decision making frame' will be launched into orbit
You'll be like.....it just went up from 50 cents to 1.00...but can I sell....what about the stock momentum....the 5% dividend yield and debt payback....this puppy is a friggan growth stock..
Ultimately, if you can read the fundamentals....and this one is easier than most.......then it won't matter what the stock price is
Someday I want to see this puppy paying a 50 cent dividend on a 50 cent stock price........that of course will never happen......it will probably trade at 10$ by then
CKL Price at posting:
51.0¢ Sentiment: None Disclosure: Held
