Search This Blog

Tuesday, October 13, 2009

Trade - BKE

Just an FYI... BKE has been taken down today. The only reason it went down was due to the special dividend pay day. (Purely for technical reasons.)

I purchased here for the trade. It usually bounces off the 20 sma while in a strong rally.

BKE has been issuing consistent special dividends for some time. So much so, that BKE dishes out about 7% a year annually. It should be no surprise as this company has such a high ownership by insiders.
Based on the frequency of special dividends, BKE should be valued more appropriately. But instead, it consistently trades between a trailing PE of 10-17. For a stock that typically yields 7%, and grows as nicely as BKE does, the multiple is simply too low. (But I am no crusader, just pointing out the patterns.)

No comments:

Post a Comment