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FHCO - Female Health Company


LC

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Yes but if that is the case I believe the market is being overly pessimistic. As you say it is the nature of the business, if the investor is not prepared to deal with that then this is not the business for them.

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I wonder if there is some concern too about a cut/suspension of the dividend.  Last quarter they generated ~$1.2M in cash, but paid out $4.0 in dividends.  They only have $6.0M in cash on the balance sheet.  If that large order doesn't come through, I'd expect a cut/suspension in the dividend...either that or they'll deplete the balance sheet.  Wonder if holders are trying to out-run the announcement.

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Yes very eyebrow raising. I took a bite. A potential dividend cut doesn't concern me, perhaps they may have to cut the divvy as you suggest and some of their institutional holders want out. Bares Capital's stake has been growing as of their latest filings in February, they now own >15%.

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  • 4 weeks later...
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And...what should have been obvious last quarter -- dividend eliminated. I love how they announce it under the guise of "new strategic plan". Truth is, they didn't have the cash to pay it.  I'm sure they'll take a new strategic direction, but who knows what shape that will take. Risk of this business just went up.

 

http://finance.yahoo.com/news/female-health-company-announces-major-123000626.html

 

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