gentlemen,
as we wait for news and the anticipated merger/ recapitalization i have been put together some circumstantial news together. Kelly has stated that he is anticipating a very quick start to the new year and has stated several times that the aquisition is set up on very favorable terms for the shareholders. i also e-mailed the otcjournal about the merger
his reply:
Editor: Some of the preliminary details I heard seemed very favorable, but I can’t comment accurately until I know the facts.
there was also a new recommendation from the otc journal coming out on january 2nd 2006 about a company with a clever ceo who is going to attempt to give a 350% divedend to it's shareholders.
also one definition of recapitalization: Companies that do not want to become hostile takeover targets might undergo a recapitalization by taking on a very large amount of debt, and issuing substantial dividends to their shareholders (this makes the stock riskier, but the high dividends may still make them attractive to shareholders).
well my thoughts are that the clever ceo is our kelly jones and if this is what pans out at the first of the year we may be sitting pretty.
here is the news/recommendation from the otc
The biggest one time dividend ever paid was $32 billion. Microsoft (NASDAQ: MSFT) paid this special one time dividend in 2005. They simply had more cash than they knew what to do with, and decided to give a big slug of it to shareholders. Bill Gates is still the largest single shareholder, so the pay out benefited Gates most of all.
The amount paid on a per share basis was $3. Therefore, if you owned the stock at $30, you got a 10% one time dividend. If you owned it at $25, your yield was 12%. I'm sure there have been much higher one time distributions on a percentage basis, but no dollar amount larger than $32 billion by one company.
I have tried to research the issue, but have been unable to find the highest dividend ever paid on a percentage basis. It would depend on the level at which you owned the security. Some of the junk bonds born in the Michael Milken era were very cheap in the tech wreck of 2001 to 2003. The market priced those bonds as if every company was going out of business. Many did not default on their obligations. I would imagine there were some 30% to 40% coupons available to those who were willing to buy when Wall Street's irrational panic resulted in monetary blood in the streets.
If you happen to be familiar with the highest dividend ever paid, I would appreciate having the information. Email me at editor@otcjournal.com.
Knowing the highest dividend ever paid is handy, but doesn't put any money in your pocket.
I've come across a situation that might put a lot of money in your pocket. Would you believe a 350% dividend? Seems impossible. Too good to be true? Never happen. It does to me as well.
Nevertheless, I have come across a company with a very ambitious plan which could end up delivering a 350% dividend. In 20 years I've never heard of such an ambitious plan nor seen one executed.
A very clever CEO has devised a workable plan to unlock the value imbedded in his company's stock, and it could end up turning into a 350% dividend.
The one catch- you have to own this stock by the end of the trading day on January 11th. If you are a shareholder of record on the morning of January 12th, you will qualify.
It's pretty tricky and very unusual. I plan to kick the New Year off with this idea. I will publish all the details associated with the idea on Monday, January 2nd. This is a one time special situation event. If it works, you could make a substantial return with very little risk.
Stand by for details. I'll have them to you on Monday the 2nd, and I will republish the information again later in the week for those that might have missed it.
has anyone else thought this out
what do you guys think
thanks teeroy
