barnyarddog
4 years ago
Who is Nimble Holdings Company Limited?
Nimble Holdings Company Limited, based in Hong Kong, beneficially owns approximately 56.2% of Emerson's common shares outstanding. Grande is engaged in a number of businesses including the manufacture, sale and distribution of audio, video and other consumer electronics products. Grande's brand portfolio includes the Akai, Sansui and Nakamichi brand
https://www.emersonradio.com/service/faq/
Grande Holdings today
Following a series of losses, Grande had reached insolvency and appointed provisional liquidators on 1 June 2011. At the time of filing, the company controlled the Akai, Nakamichi and Sansui brands as well as its key assets, including a TV factory in Zhongshan, China. The company also owns Ross Group plc,[2] a transformer manufacturer in the United Kingdom, majority ownership of Emerson Radio, and Kawa a Chinese brand of electronics. The company is currently incorporated in Bermuda as an exempted company with limited liability.
https://en.wikipedia.org/wiki/Grande_Holdings
NewJerichoMan
4 years ago
"Penny Stocks To Buy [or sell]: Emerson Radio Corp.
Emerson Radio Corp. ( MSN Stock Report ) is one of the lower float names on this list. Something to keep in mind with low float penny stocks is that they tend to be very volatile especially in light of above-average trading volume. On Monday, MSN stock jumped over 25%, trading its highest, single-day share volume since June.
There weren’t any headlines nor filings to accompany the move. The company is one of the nation’s oldest consumer electronics distributors. You’ve likely seen the logo on plenty of electronics and appliances if you recall going to department stores, pre-COVID. One of the things to consider with companies like Emerson is what’s going on in the U.S. right now. A push for stimulus, on a basic level, means money in consumers’ pockets. The company’s customers include Kroger, Wal-Mart, Amazon.com, and Fred Meyer."
If no news accompanies this spike, should be a slow grind back to low 70's or high 60's.
NewJerichoMan
4 years ago
Share price drop to mid-sixties.
Usually ARCX is on the ASK daily, waiting to sell to whomever wants to buy.
Historically, this is long-term bottom in share price, where it will rally. But I doubt it happens this time. Company is slowly dying on the vine. Lots of cash on the books, high book value, but the company is seemingly on auto pilot, with CEO and CFO pulling down significant paychecks despite not returning value to shareholders.
There's a point where this becomes a buy but I think it's farther south from here.
stargazer123
10 years ago
Do Not Reduce order: Interesting, the Ask for tomorrow is $2.05, but the bid is only $1.01. Previous days the pre-opening ask/bid has been around $2.05/$1.95. Since the bid is so much lower than the normal $1.95, it could be that people more familiar than me with special dividends, think that it is going to open lower Wednesday. The company stated that the payable shareholders of record will be Sept 12. The stock fell on what would be the normal ex-dividend date, Sept 15. I don't know the opening price that day, but it ended down only .25 which is a lot less than .70. But even though the company said that shareholders of record will be Sept 12, it is the stock exchange that officially determines the ex-dividend date, and for a 25% dividend, or higher, this is the day after the payable date, which was Tuesday, Sept 30. So the ex-dividend date would Wednesday, Oct 1st. MSN closed at $1.98, so that may mean that at the start of trading it will be listed as $1.28. But maybe not. I found one reference that said that a company can arrange for the stock price not to be lowered by the amount of the dividend, although it said that this was very rare. Since the stock closed at $1.98 and the Ask is $2.05, that means that people want a price at least 7 cents higher than the close. Since only a few hundred shares may be offered at this price, I added an additional 5 cents, which would normally be $2.10, but the exchange automatically drops the ask/bid by the price of the dividend: $0.70, so the Ask would be $1.40, not $2.10. I put in a bid of $1.40 BUT normally the exchange would also lower this by $0.70. To prevent that from happening, I added DNR to the order (Do Not Reduce). If the stock doesn't open lower, I will cancel my order. I'm happy with the $2.00 price I paid for my present shares. Just thought that I would try to get some for $1.40.
stargazer123
10 years ago
Doing more research, it looks like normally a stock would fall the amount of the dividend on the ex-dividend day, which would be before the payable day. However, for a 25% stock dividend, or higher, the ex-dividend day is the day following the payable date. The payable date for MSN is Tuesday 30 September, so Tuesday the stock should open 70 cents below Mondays closing price or $2.00. If you own shares and want to be paid the dividend, if I have this correct, you have to wait until Wednesday to sell your shares, but, whether you own shares or not, you can buy more starting Tuesday morning and share in the profit as the stock works its way higher again. (Possibly the stock won't open lower until Wednesday, the ex-dividend day. The articles weren't clear on that point.) As you may have noticed, the stock has been strong ever since the special dividend was announced. People realize that more will probably be declared in the future. The last few days the stock dropped, but then started climbing again and finished back at $2, its new trading range. So on the morning that the stock opens lower, this coming morning or Wednesday, I will buy more shares. That way I can participate as they go back up again, plus eventually receive another special dividend or have the stock bought out at a higher price.
stargazer123
10 years ago
Buying the stock ex-dividend may be a very profitable trade.
In respect to cash dividends of stocks which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.
Emerson Radio Corporation declared an extraordinary cash dividend of $0.70 per common share payable on September 30, 2014 to shareholders of record. The first business day following that would be October 1. I think that would make the ex-dividend date September 29 (Monday). So the stock should open at a price $0.70 below the previous closing price (or it could be that the stock opens $0.70 lower on October 1, but I think it's Monday.) That means that it should open at a price of $1.22 ($1.92 closing price minus $0.70 dividend).
Since the company has cash equivalent of $47.9 million and 27.1 million shares, that means that it's intrinsic value is $1.76/share. When a stock opens after having it price lowered by the amount of its dividend, it usually quickly starts rising. It may not rise all the way to its intrinsic value, it may only go up to around $1.60 range, but after a while, it will probably rise toward the $1.76 level, and eventually reach the $2 level as people get comfortable with the stock, especially since it may have another special dividend next year, or sooner, and may also be put up for sale.
If it starts at $1.22 and reaches $1.60, this would be a +30% rise. $1.76 would be a 44% rise and $2 would be a 64% rise. People can't make money buying a $10 or higher priced stock ex-dividend, but they can make money on a low priced stock, such as a $2 stock. This might not work if the stock is weak and has problems. Our stock has problems, but I think that all things considered, it is a fairly good stock. If the stock opens low enough I will buy more shares, whether that is today or October 1.
stargazer123
10 years ago
The chance of future special dividends or sale of company.
There is a high probability that there will be more special dividends in the future, which will act as a catalyst to the stock price, plus the stock is trading well under its liquidation value of $2.18, and management is being urged to sell the company at a price above its liquidation value, and if that takes place the stock will be sold well above its present trading range. Either way, with future special dividends and a stock price possibly in the $2 range, or a buy out above $2.18 this is a good stock to hold, but remember, the operating word here is "possibly" not certainly. Investors would need to monitor how the company is doing, plus keep track of company announcements.
Shares Outstanding: 27.1 million
Cash equivalents $47.9 million + receivables & inventory minus liabilities = $59.2 million
$59.2 / 27.1million shares = $2.18/share
Involved investors with large holdings, such as Lloyd Miller III, have repeatedly pushed for shareholder-friendly actions. This can be clearly seen from various recent schedule 13D filings. In particular, Mr. Miller has pushed for a sale of the entire company or for more special dividends. The recent announcement of a $0.70/share dividend is the result of such effort. It's likely that the board of the company will arrive at more shareholder-friendly decisions down the road.
13D filing
As previously disclosed, Mr. Miller directs a number of urgent questions to the Board of Directors, based on his review of Emerson’s public filings and the Schedule 13D amendments filed by a subsidiary of Emerson’s controlling stockholder. In particular.
Mr. Miller has urged Emerson to return value to stockholders and appreciates the recent extraordinary dividend of $0.70 per share of common stock declared by the Board of Directors. Mr. Miller believes that the Board should return value to stockholders through cash dividends rather than maintain excessive cash balances, especially while control of the Company is in question.
Mr. Miller continues to believe that the Board of Directors of Emerson should pursue a sale of the Company. Mr. Miller believes that Emerson stockholders face continuing uncertainty as a result of the ongoing restructuring of Emerson’s controlling stockholder, The Grande Holdings Limited (Provisional Liquidators Appointed). Mr. Miller believes that the rights of minority stockholders continue to be compromised by uncertainties over the control block of shares held by Grande Holdings.
What protections are provided to Emerson public stockholders if Grande receives approval to be listed on the Hong Kong Stock Exchange? Mr. Miller believes that a sale of Emerson is in the best interests of Grande as well as Emerson, and would provide liquidity for Grande and its creditors during the restructuring. Mr. Miller believes that the obligations of Emerson as a U.S. public company can be best served by a sale of the company.
As a long-term investor, Mr. Miller believes that each member of the Board has a duty to minority public stockholders, including directors who have relationships with Grande Holdings. Emerson has a long history of related party transactions and accounting failures, as well as litigation and tax disputes that created risks to shareholder value, many of them related to Grande and its affiliates.
In view of prior lawsuits against Emerson insiders in conflict of interest transactions, Mr. Miller believes that further litigation might result if Grande remains in control of Emerson. Mr. Miller will continue to scrutinize all transactions that affect Emerson common stock and its trading value.
In the Schedule 13D and prior amendments, Mr. Miller has communicated with the Board of Directors of Emerson to urge them to enhance shareholder value, including through cash dividends and a sale of the Company to resolve uncertainties over the bankruptcy and restructuring of Grande Holdings, the Company’s controlling shareholder.
stargazer123
10 years ago
Today is the last day to get the dividend (or possibly tomorrow), conversely, if you sell today, you don't get the dividend
The MSN Board of Directors declared an extraordinary cash dividend of $0.70 per common share payable on September 30, 2014 to shareholders of record of the Company at the close of trading on September 12, 2014. Since the stock is trading near the $2 range, this = a 35% dividend.
For a dividend of 25% or greater of the value of the security the Financial Industry Regulatory Authority (FINRA) indicates that the ex-dividend date is the first business day following the payable date, which in this case is Sept 30. The ex-dividend date is the date the security trades without its dividend and if the security is bought on this date it is not eligible for the dividend. But because of the T+3 rule, it takes 3 days from the transaction for the stock purchase to be entered into the companies books. Therefore, in this case, the stock has to be bought 3 business days prior to the payable day, which would be Sept 25.
When a company declares a special dividend of 25% or greater they are not required to state that the actual ex-dividend date is the first business day following the payable date. They can just state the date that would apply for a normal dividend. Most companies do this and so people that sell on that date do not receive the dividend. In this case, anyone that sells today, or earlier, such as Sept 12 as stated by the company, will not receive the dividend. (It could be that it is tomorrow that you can still buy and get the dividend, but to be safe do it today, and do not sell today, or if you sold previously, buy back today.)
BWAstrology
10 years ago
So, I did some research and found out that MSN's last dividend was back in March 2010. The record date was 3/15, the pay date was 3/24 and the ex date was 3/25. It makes NO sense what-so-ever.
Like I said below, Fidelity is saying, 9/12 is the record date, 9/30 is the pay date and 10/1 is the ex date...
Can you please call your broker and see for yourself. Just ask them what the ex date is.
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