stocks you like for growth in the future

[Retired Ramp Guy]

(I'm not a fan of stock dividends or share buybacks. Its's all smoke an mirrors)

(I don't own any stocks that don't pay a dividend. I have one stock that is converting into a Limited Master Partnership and 100% of the profits will be paid out in dividends.)

Well, ok I guess....

[Mitchum]

I like cash dividends, not stock dividends.

[Eastside Terp]

I like cash dividends, not stock dividends.

the one you told me about last month has had a nice little run in the past week ........

up about 17%+ since I got in and a 6%+ dividend yield to boot ......

up another 2%+ in after hours trading this evening ......

[Mitchum]

They had a blurb on CNBC about how the sector is going to be the hottest things since sunburn. That one could easily 4-5X itself.

I am feeling kinda screwed on the other one. It ex-dividended today. I am used to getting a big fat cash dividend from them and this time they split it between stock and cash.

That's why I don't like stock dividends. Give me the cash and I will decide whether I want to reinvest it in the company or not.

[Retired Ramp Guy]

I like cash dividends, not stock dividends.

Stocks pay dividends in either cash or "Drips", so it's the "drips" you don't like....

[Mitchum]

Nope. A DRIP is a company sponsored Dividend ReInvestment Plan. The company gives you a cash dividend and buys it's own stock with the cash. The only advantage to that is that you don't pay a commission.

Some companies pay dividends in cash or stock or some combination thereof.

[aliensquirl]

Nope. A DRIP is a company sponsored Dividend ReInvestment Plan. The company gives you a cash dividend and buys it's own stock with the cash. The only advantage to that is that you don't pay a commission.

Some companies pay dividends in cash or stock or some combination thereof.

Can you explain how 'pay dividends in ... stock' works?

[Mitchum]

For every share of stock that you own as of the ex-dividend date the company will give you "X" shares.

Here is a real world example of a combination dividend.

http://biz.yahoo.com/e/120130/scco8-k.html

[aliensquirl]

Thanks. I've been reading Yahoo Finance for about fifteen years and have been aware of 'cash dividends' and 'stock splits', but not 'stock dividends'. They must be a rare occurrence.

[Mitchum]

The only times I have experienced is when the Company wants to use the shareholders cash to pay for something. In the example I gave it will be used for a mine expansion.

[Mitchum]

the one you told me about last month has had a nice little run in the past week ........

up about 17%+ since I got in and a 6%+ dividend yield to boot ......

up another 2%+ in after hours trading this evening ......

.....and it's still rolling. Up another 4.5% today. I am already up close to 50% on it not counting the dividends.

[mythoughts]

Kodak, Blockbuster and record+tape stores

[skeemer]

Stock dividends are rare, but they are more common after stock buybacks. To be a true stock dividend, the stock needs to come from the company's treasury stock, and not from newly issued stock, which would effectively be a stock split as the price would be adjusted to maintain the market cap. With a stock dividend, the company gives out some of it's self-owned (treasury) stock rather than give out cash from its balance sheet. This gives the company flexibility to use their cash for acquisitions or reinvestment while still increasing shareholder equity.

[aliensquirl]

the one you told me about last month has had a nice little run in the past week ........

up about 17%+ since I got in and a 6%+ dividend yield to boot ......

up another 2%+ in after hours trading this evening ......

So what is this secret stock that is making everyone rich?

[Mitchum]

Never chase a ship that has already sailed.

There will be another one shortly.

[afan]

I just bought some SOHU. I think it has hit a bottom.

[afan]

GM is ready to go north as well. Great profit. I guess the bail out worked. Now the right wants to take credit under Bush for this. I guess if it did not work it would have been Obama's. Just saying.

[Mitchum]

The stock we were talking about is Navios Maritime. What we do is try and buy the lowest cost producers in cyclical industries and the lowest part of the cycle and hang on. We call it "Getting Rich Slowly".

Friday afternoon at HAppy Hour I had a guy tell me to buy Michael Kors stock. I sort of forgot about it/didn't pay any attention. Monday it was in the low 30's today it's $42.

[Scaggsville]

The stock we were talking about is Navios Maritime. What we do is try and buy the lowest cost producers in cyclical industries and the lowest part of the cycle and hang on. We call it "Getting Rich Slowly".

Friday afternoon at HAppy Hour I had a guy tell me to buy Michael Kors stock. I sort of forgot about it/didn't pay any attention. Monday it was in the low 30's today it's $42.

Any opinions on worst case/exposure for Navios in re: this Greek bailout business?

[Mitchum]

There is no exposure. They are Greek in name only and the have a headquarters in Piraeus. They are actually a Marshall Islands (I am pretty sure I'll have to look it up) corporation. Most of there charters are in South America which is booming economy wise and 100% of their charters' profits are insured. They take out insurance policies to cover the profits if a charter agreement is broken, which is rare.