by Travis Johnson, Stock Gumshoe | June 12, 2008 11:05 am
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Looks like that post-dividend swoon would indeed have been a good buy-in point, the recovery has been much quicker than I expected — often these types of companies that are sought by dividend-driven investors have a longer mushy period following dividends, as they often get investors buying in for the dividend (as foolish as that is) right before the ex div date. Shares are up a good 10-15% from when I wrote this comment, though it would not be surprising for the price to decay a bit over the coming months absent other news — the Fremont approvals seem to all be in, and there’s no likelihood of a dividend hike or other big news before next earnings that I know of, unless CSE uncharacteristically provides detail on the Fremont acquisition before then and gives some idea for how they expect it to impact near-term earnings so that analysts can firm up their estimates.
This remains a long term hold for me — I’m enjoying the heavy dividend return, and I like management, but as a mid-market lender it certainly faces risks.
Hi Travis,
I enjoy your witty analysis. Thanks for a providing a great forum.
Please continue the updates for CSE, especially Buy/Hold/Sell advice. I bought ex-dividend and the shares are currently below my purchase price. I’m considering buying more because the dividend looks very attractive, but I’m afraid of the ‘falling knife’. (I just read the Forbes ‘Loan Shark’ piece on John Delaney. He doesn’t seem particularly trustworthy, but I’d rather be with him than against him.)
Thanks,
Lenore