Apr 13, 2007
It looks like I wasn’t the only one looking to capture the $1.25 dividend in Celebrate Express (BDAY) (articles). Insiders and large owners also lapped up shares just before the ex-dividend date:
INSIDER TRANSACTIONS REPORTED - LAST TWO YEARS
| Date |
Insider |
Shares |
Type |
Transaction |
Value* |
As expected, shares have dropped as the stock went ex-dividend. But note that they did not drop the full $1.25. My basis is $9.85, or an adjusted $8.60. I look for the stock to rebound to the mid-$9 range within three weeks.
DISCLOSURE: I am long BDAY. Not a recommendation to buy or sell any security. For informational and educational purposes only.
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Apr 10, 2007
Long-time readers will know I am a fan of special dividends. More often than not, the stock takes a short dip when it goes ex-dividend and recovers in full in short time. Meanwhile, savvy investors get to pocket the cash.
Celebrate Express (BDAY) has a big special dividend coming. The party store chain will pay $1.25 on April 26 to shareholders of record on April 12.
BDAY has stumbled of late, and the chart reflects the market’s disappointment. While the company has discontinued its unprofitable Storybook Heirlooms brand, it still expects a small GAAP loss in 2007. BDAY should be profitable excluding non-cash compensation expenses. I think that the company is lowballing estimates to bring down expectations, and that there is a fair chance the company will be GAAP profitable for the full year (note that the most recent quarter came in at the high end of guidance). Either way, Celebrate Express has a solid balance sheet, with over $32M in cash, a market cap of $77.85M and an enterprise value of $45.78M.
DISCLOSURE: I am long BDAY. Not a recommendation to buy or sell any security. For informational and educational purposes only.
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