Tag Archives: special dividend

PV Crystalox Solar PVCS – Ready to give out cash?

(Figures in Euros unless otherwise stated)

Solar panel maker that has been savaged by cheap Chinese competition. I can’t recall the details of what’s gone on in the industry but essentially there has been mass over supply. At the half year point they had 122m cash. And at a glance about another 100m of assets too. Their strategy seemed to be  to cut costs, reduce production and limp along until prices recovered – using their cash pile slowly. Of course shareholders might like the company to voluntarily fold and cash to be distributed.

First half loss was about 12m. Market capitalisation is £35m.

In the management statement released yesterday ( from the ‘outlook’ paragraph):

‘’The Group has a strong net cash balance and the Board is continuing to reorganise the Group, to enable the return of cash to shareholders. The Board expects to make a further announcement before the year end.’’

From the half year report ‘outlook’ section:

‘’While the Group continues to believe in the positive long-term outlook for PV, it is mindful of the intensely competitive environment which is likely to persist in the short to medium-term and which has already led to many companies exiting the industry, either voluntarily or through insolvency. The Group has a strong net cash balance and the Board will make the necessary decisions during the remainder of the year to serve the best interests of shareholders.’’

This looks like a change of attitude within the company. Just how much cash they might return is a guess at the moment. Of course with a dividend payout the share price will fall but if a payout is announced, then I expect the SP to jump before the ex div date.

Indigovision Special Dividend (IND)

I bought some Indigo Vision shares yesterday after looking for an opportunity to buy since their large increase in price over the last month or so – due to their very positive trading update and announcement of a special dividend. Today is the ex-div date for their special dividend of 70p. I had wondered if the share price would drop by more than the dividend, the exact amount, or less. I hoped for a drop of less obviously or a bounce but it turns out the share price has dropped by just under 80p! This means that had I waited and bought today I would have saved 10p / 411.57p = 2.4%

Perhaps for the majority of buyers the tax liability on dividends works out less than the capital gains of selling before the dividend.

Never mind, my curiosity has been satisfied and I’m more than happy to hold this company given its optimistic outlook .