- Created on Tuesday, 10 May 2011 01:40
|May 9, 2011|
Collectors Universe CLCT Post Record Quarter For Shareholders
Taking a look at the balance sheet, the company has a large 21+ Million dollar cash bankroll, and less than $10 million in current liabilities. The large cash balance might have to do with the large dividend, which is paid quarterly at $0.325 per share. For those of you not familiar with how dividends work, the company basically pays you $0.325 per share, each quarter (every 3 months). So for example, today CLCT closed at $15.57 per share - if I owned 10 shares (10 x $15.57 = $155.70) Collectors universe would send me $3.25 (or 10 x $0.325) every 3 months. Most investors re-invest dividends, so in this example I would buy $3.25 worth of stock instead of taking it in cash - which would be good for about 1/3 of a share each quarter.
The company also has roughly $3.7 million allocated to a Share Buy-Back, which is basically the company reducing the number outstanding shares. However, the company has not purchased shares since 2008 - which was when shares were under $5. The dividend, and continued growth in the gold/silver coin grading should help continue to raise the stock price over time. If the company decides to execute the remaining buy-back monies, it should also mean good things for investors in the future.