General Maritime (GMR) special cash dividend of $15/share!!!

Discussion in 'Stock picks and trading strategies' started by Damon, Feb 21, 2007.

  1. Damon

    Damon Member

    I bought GMR in January of last year @ $37/share. The last time Jim Cramer mentioned it on his show (03/28/06), he was bearish on it. It had closed at $33.92 that day. I doubled down at $33, bringing my cost basis to $35/share.

    Since his show on 03/28/06 - the last time he mentioned the stock - it has returned $2.80/share in dividends. It closed today at 39.72. They also just anounced a $15/share special cash dividend to be paid on or about March 23 to shareholders of record as of March 9!

    Wow. Sometimes Jimmy really blows it. [​IMG]

    - - - - - - - - - - v v v Article v v v - - - - - - - - - -

    Feb 21 (Reuters) - Oil tanker operator General Maritime Corp. (GMR.N: Quote, Profile , Research) said its board has declared a special one-time cash dividend of $15 per share.

    The dividend will be paid on or about March 23 to shareholders of record as of March 9.

    The company said its board has revised its quarterly dividend policy and set a regular quarterly dividend target of 50 cents a share per quarter, starting with the first quarter of 2007. (Reporting by Sankalp Saini in Bangalore)


    http://yahoo.reuters.com/news/artic...02-21_21-38-41_WNAS1620&type=comktNews&rpc=44
     
  2. art vernon

    art vernon New Member

    I'm gettin in ASAP.....:)
     
  3. Damon

    Damon Member

    The news broke about the special dividend just after close today. I grabbed more shares in after-hours immediately @ 42.85. The stock is currently trading A/H at 43.75 - up better that 4 bucks from close.

    I turned my grandfather on to GMR and he bought quite a few shares in April of '04. I sure hope he still has them.
     
  4. gotcramer?

    gotcramer? Member

    Sounds kinda fishy to me.

    I thought when a dividend like that was offered it was to shareholders of record for some past date, not an upcoming date.

    Sounds like they want people to buy this stock real bad for some reason.

    Maybe to jack up prices to unsuspecting buyers...
     
  5. Rich

    Rich Member

    Is it possible that Reuters meant shareholds since March 9, 2006 ?

    Arn't dividends usually paid out quarterly or yearly, which would then be in line with the 2006 date?

    Rich
     
  6. Imperator

    Imperator New Member

    once the dividend is declared, the stock price will compensate for that new information... then fall again after the ex dividend date.


    Congrats man, nice to have a solid paycheck like that coming to ya!
     
  7. ub3rn00ber

    ub3rn00ber Member

    So This would be a good short around the 8th?
     
  8. art vernon

    art vernon New Member

    yes....
     
  9. noobtrader

    noobtrader Member

    Hey everyone,
    Most definetly im gonna try to get in as much as I can, Trying to get in with around 3 grand if I can. Although I wont be able to buy in the Premarket and I know the stock will sky rocket tomorrow. The reason the company is offering the dividend is in the article I found while searching. I just wish I could get in the premarket but even 50 shares will be good bc youll get both the increase from the stock and also the dividend. Also if your looking for other dividend stocks go to www.dividenddetective.com they have a nice list that tells you the dividends of companies and stuff.




    "The special dividend is out of its credit facility, which the company amended to increase the total commitment to $900 million from $800 million earlier.
    Reuters Pictures


    The company said available funds under the credit facility of about $400 million after the distribution of the special dividend provides it with the potential to acquire assets in excess of $1 billion in market value.

    The special dividend will be paid on or about March 23 to shareholders of record as of March 9."
     
  10. gotcramer?

    gotcramer? Member

    I'm still skeptical. It sounds too good to be true.

    I'm not in, but for those of you that are, best of luck.
     
  11. Rich

    Rich Member

    I tend to agree with you, companies don't advertise that their giving free money away. I think the article is mistaken, until I see anotherone from someone else I'm on the sidelines.

    I've mixed feelings, I hope they will give it away, but then I hope they don't because I'm going to be depressed that I didn't get into it.

    Rich
     
  12. gotcramer?

    gotcramer? Member

    The conference call is currently happening at this time.
     
  13. noobtrader

    noobtrader Member

    hey all,
    Im listening to the conference call now. GMR is a stock you might wanna keep even after this special dividend...of course it might drop after the special dividend but they have opted to go to a 2.00 annual dividend... 50 cents per quarter/per share. Also the company has stated that during 07 they will have enough free cash to do a company buy back of stocks. They have bought of 18% of their stocks back to make the price of the stock more attractive. Their outlook for 07 looks good,

    right now up 3.04 dollars to 42.76 in the premarket,,, lets see where it goes today
     
  14. gotcramer?

    gotcramer? Member

    The special dividend sounds legit, however I'm still not clear on who gets it.
     
  15. noobtrader

    noobtrader Member

    they said to shareholders as of the 9th of march in the conference call...

    Did you listen to the conference call?
     
  16. gotcramer?

    gotcramer? Member

    Not very closely. Thanks NT.
     
  17. noobtrader

    noobtrader Member

    Just asking thats all.. im not trying to downplay your interest on the dividend.. i know ppl that bought alot of shares soo ill let you know when im walking to the bank with the paper hehehehe
     
  18. noobtrader

    noobtrader Member

    hey everyone bought 70 shares of GMR at 43 bucs a share. gonna get 30 more by the 5th. should be a nice little return with the 15.00 dollar special dividend and also the .62 cent dividend they are giving on the 23rd

    plus they now have a fixed dividend of .50 cents a share quarterly
     
  19. Imperator

    Imperator New Member

    when you short the stock, YOU have to pay the dividend to the person you borrowed the stock from. be careful.
     
  20. noobtrader

    noobtrader Member

    YOU have to pay the dividend to the person you borrowed the stock from?

    what do you mean? I dont get what you mean borrowed the stock from, your buying your own stock in the company not buying someone else's stock off them. once you sell the stock you sell the stock and the dividend is paid to you. The hold date is till the 9th of march but im gonna hold it till the 10th so that it is for certain I get my dividend.
     
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