close Email this News Article Your Name Your Email Friend's Name Friend's Email Receive Copy: yes
ZNCM 1.96 0.26
Today 5d 1m 3m 1y 5y 10y
Zunicom Announces Cash Dividend On Common Stock Zunicom, Inc. (OTCBB:ZNCM.OB), announced today an eighty cents ($0.80) per share cash dividend on its issued and outstanding shares of common stock. The dividend will be payable on March 24, 2007, to shareholders of record on March 9, 2007. Zunicom does not have accumulated earnings, but estimates it may have a small amount of net earnings for calendar 2007. Zunicom therefore believes that the cash distribution (in excess of 2007 net earnings, if any) may be treated as a tax-free return of capital to the extent of the shareholder’s adjusted tax basis in our shares and thereafter as a capital gain. However, shareholders should consult their own tax advisor when reporting this dividend on their 2007 tax returns.
About Zunicom, Inc.
Zunicom, Inc. (www.zunicom.com) through its wholly owned subsidiary, AlphaNet Hospitality Systems, Inc. (www.alphanet.net), provides business communication services to the hospitality industry. Zunicom owns 2,000,000 shares of the common stock of Universal Power Group, Inc. (Amex-UPG) that represents 40% of the issued and outstanding shares of UPG common stock as of this date.
Forward-Looking Statement Disclaimer
This release contains a number of forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company’s actual operating results to be materially different from any historical results or from any future results expresses or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “believes,” “belief,” “expects,” “expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,” “plan,” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with Securities and Exchange Commission.
Zunicom, Inc. Carl A. Generes, 214-352-8674 fax: 972-715-5700 cgeneres*genereslaw.com
Source: Business Wire (February 26, 2007 - 8:19 AM EST)
Moderator: MikeS97707 Assistants: NoneBoardmarks: 8 Created: 7/22/2003 12:05:40 AM
Zunicom, Inc., has two subsidiaries including Univeral Power Group and AlphaNet. Univeral Power Group recently had an IPO and is now trading on the AMEX under the symbol UPG. Zunicom sold 1M shares of UPG stock in the IPO and UPG sold 2M shares. Consequently, there are 5M shares outstanding and ZNCM owns 2M or 40%. Zunicom owns 100% of the AlphaNet subsidiary.
UPG Universal Power Group, Inc. engages in the distribution and supply of portable power and related synergistic products; and provision of third-party logistics services in the United States. It distributes various products, including batteries, battery chargers, and related accessories; portable battery-powered products, such as jump starters and 12-volt power accessories; security system components, such as alarm panels, perimeter access controls, horns, sirens, speakers, transformers, cabling, and other components; and electro-magnetic devices, capacitors, relays, and passive electronic components. The company’s third-party logistics services include inventory sourcing, procurement, warehousing, distribution, and fulfillment. Universal Power Group also provides value-added services, including custom battery pack assembly, custom kitting and packing, private labeling, component design and engineering, graphic design, used battery pick-up and disposal, and sales and marketing. In addition, the company sources and distributes batteries and portable power products under various manufacturers’ and private labels, as well as under its own brands. Its products are used in various industries, including automotive, marine, recreational vehicles, medical devices and instrumentation, consumer goods, electronics and appliances, marine and medical applications, computer and computer-related products, office and home office equipment, security and surveillance equipment, and telecommunications equipment and other portable communication devices. Universal Power Group distributes its products to original equipment manufacturers, distributors, and retailers. The company was founded in 1968 as Computer Components Corporation and changed its name to Universal Battery Corporation in January 2003. Subsequently, it changed its name to Universal Power Group, Inc. in May 2003. The company is headquartered in Carrollton, Texas. Universal Power Group, Inc. is a subsidiary of Zunicom, Inc.
AlphaNet AlphaNet is a leading provider of business communication, productivity, connectivity and wireless services to the hospitality industry. With over a decade of experience serving the hotel industry, and with tens of thousands of installed rooms, AlphaNet has the resources to provide an unmatched level of service and support.
Investment Thesis I've invested in ZNCM because the stock is quite undervalued given the value of its UPG holdings and its assets. This arbitrage opportunity came about because of the UPG IPO. It is trading at a discount to book value which I estimate at $2.16 to $2.22 per share post IPO. However, I think ZNCM is worth far more than book value. Based upon an asset evaluation, I think they are worth $3.18/share. See my analysis in the following posts:
1) Lotsa cash, even in 2005, before they sold their UPG shares. 2) Trading about 1x book value 3) Great quick ratio
Small float and o/s don't hurt either. Got a little on the retrace after the morning run-up, I look at this to perform similar to NEGI post dividend. Post dividend, NEGI has increased over 33%...
Posts: 949 | From: Little Rock, AR | Registered: Dec 2005
| IP: Logged |
posted
I picked up a good amount today. Should run into the ex-div date. Goal is $2.60 before the div
Posts: 43 | From: Long Island | Registered: Mar 2005
| IP: Logged |
quote:Originally posted by Gameplayers: May I ask how long do I have to hold the stock for in order to receive the dividend?? thanks
Here's the PR:
Zunicom Announces Cash Dividend On Common Stock
Zunicom, Inc. (OTCBB:ZNCM.OB), announced today an eighty cents ($0.80) per share cash dividend on its issued and outstanding shares of common stock. The dividend will be payable on March 24, 2007, to shareholders of record on March 9, 2007 .
But you have to watch the filings for the ex-dividend date. The ex-dividend date is the date that you must own your shares, before the end of closing. Sometimes the PR will incorrectly state that the record date or the payment date is the day you must get in by. After the ex-divvy day passes, you are free to sell it, and you will receive the dividend.
Check OTCBB.com for the actual ex-dividend date. FYI, as of today, it has not been officially filed.
Posts: 949 | From: Little Rock, AR | Registered: Dec 2005
| IP: Logged |
quote:Originally posted by Gameplayers: May I ask how long do I have to hold the stock for in order to receive the dividend?? thanks
Here's the PR:
Zunicom Announces Cash Dividend On Common Stock
Zunicom, Inc. (OTCBB:ZNCM.OB), announced today an eighty cents ($0.80) per share cash dividend on its issued and outstanding shares of common stock. The dividend will be payable on March 24, 2007, to shareholders of record on March 9, 2007 .
But you have to watch the filings for the ex-dividend date. The ex-dividend date is the date that you must own your shares, before the end of closing. Sometimes the PR will incorrectly state that the record date or the payment date is the day you must get in by. After the ex-divvy day passes, you are free to sell it, and you will receive the dividend.
Check OTCBB.com for the actual ex-dividend date. FYI, as of today, it has not been officially filed.
hey bilgert, take a look at NEGI for example, they gave out their dividend, and on its PR on the Jan 22, it said: -
"payable on February 15, 2007 to stockholders of record as of the close of business on February 1, 2007."
take a look at its chart, you can clearly see that on many people bought on or before Feb 1, and they sold the shares on the Feb 2.
But then the share price only got adjusted on the payable date which is the Feb 15th.
Right what I am saying is I find that quite strange, if I bought on Feb 1, then sold Feb 2 for a minor loss, would I have got the dividend?? and that I dont have to stay on until the payable date??
Surely something is wrong right??
Posts: 36 | Registered: May 2006
| IP: Logged |
quote:Originally posted by Gameplayers: May I ask how long do I have to hold the stock for in order to receive the dividend?? thanks
Here's the PR:
Zunicom Announces Cash Dividend On Common Stock
Zunicom, Inc. (OTCBB:ZNCM.OB), announced today an eighty cents ($0.80) per share cash dividend on its issued and outstanding shares of common stock. The dividend will be payable on March 24, 2007, to shareholders of record on March 9, 2007 .
But you have to watch the filings for the ex-dividend date. The ex-dividend date is the date that you must own your shares, before the end of closing. Sometimes the PR will incorrectly state that the record date or the payment date is the day you must get in by. After the ex-divvy day passes, you are free to sell it, and you will receive the dividend.
Check OTCBB.com for the actual ex-dividend date. FYI, as of today, it has not been officially filed.
hey bilgert, take a look at NEGI for example, they gave out their dividend, and on its PR on the Jan 22, it said: -
"payable on February 15, 2007 to stockholders of record as of the close of business on February 1, 2007."
take a look at its chart, you can clearly see that on many people bought on or before Feb 1, and they sold the shares on the Feb 2.
But then the share price only got adjusted on the payable date which is the Feb 15th.
Right what I am saying is I find that quite strange, if I bought on Feb 1, then sold Feb 2 for a minor loss, would I have got the dividend?? and that I dont have to stay on until the payable date??
Surely something is wrong right??
There are special rules about dividends that are worth 25% or more of the PPS. The record date is always a bookkeeping date for the Transfer Agent. The important date for us investors is the Ex-Dividend date. Ex-dividend is the first date the stock trades without the dividend. Even if you have the shares before the record date and don't hold them through the Ex date you are trading the Divy with the shares. I'll post the NASD rule later. Need to find it.
If you sold Feb 2 you wuold not have received the divy. People that sold were uninformed and did not get the Divy.
Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
posted
huh, this is very interesting. knowing nothing about the company and only doing a little bit of looking, my one question would be: yahoo finance shows them as having .17/sh in cash. how/why are they dishing out a .80/sh divvy if they only have .17/sh cash? not trying to be critical or bash, and i freely admit i haven't researched this one. just not sure i understand this point though - are they liquidating assets to generate the cash, and if so - why? does yahoo finance have the stats wrong?
Posts: 1698 | Registered: Mar 2004
| IP: Logged |
The record date was 2/1/07, but the ex-dividend date was 2/15/07. The 2/1, 2/2 drop was the result of people who were a little confused by the wording and/or the fundamentals behind ex-dividend and record dates.
quote:Originally posted by Gameplayers: hey bilgert, take a look at NEGI for example, they gave out their dividend, and on its PR on the Jan 22, it said: -
"payable on February 15, 2007 to stockholders of record as of the close of business on February 1, 2007."
take a look at its chart, you can clearly see that on many people bought on or before Feb 1, and they sold the shares on the Feb 2.
But then the share price only got adjusted on the payable date which is the Feb 15th.
Right what I am saying is I find that quite strange, if I bought on Feb 1, then sold Feb 2 for a minor loss, would I have got the dividend?? and that I dont have to stay on until the payable date??
Surely something is wrong right??
Posts: 949 | From: Little Rock, AR | Registered: Dec 2005
| IP: Logged |
posted
Blue, I wondered the same thing, but read on IHub that they recently sold a big chunk of shares of one of their subs and now have more than enough cash. If you want me to find it, let me know. There was an actual filing of the sale of shares, not just a PR or something.
quote:Originally posted by blue_in_MI: huh, this is very interesting. knowing nothing about the company and only doing a little bit of looking, my one question would be: yahoo finance shows them as having .17/sh in cash. how/why are they dishing out a .80/sh divvy if they only have .17/sh cash? not trying to be critical or bash, and i freely admit i haven't researched this one. just not sure i understand this point though - are they liquidating assets to generate the cash, and if so - why? does yahoo finance have the stats wrong?
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
Gameplayers, it can definitely be confusing, but what the others are telling you is correct. In fact, i bought NEGI at 6.30 on Feb 14th and sold at 3.30 on the 15th. I didn't lose $3 on the trade, I made .30.
Howvere, it's apparently even confusing to the brokers sometimes. I had to call my broker and ask for my dividend. They wrote back and said "you bought after the record date, so you don't get the dividend." I wrote back and said "Well, then WHO got my dividend? Certainly not the person that I bought from, as they couldn't get the higher price AND the dividend, and not the person that I sold it to, as they also bought after the record date." A day or so later they wrote back, "apologizing for the confusion" and my cash was in my account later that day.
In reality, the ONLY date that means anything to us in these cases is the ex-date, ignore the other dates and you'll be more sane.
quote:Originally posted by Gameplayers:
quote:Originally posted by bilgert:
quote:Originally posted by Gameplayers: May I ask how long do I have to hold the stock for in order to receive the dividend?? thanks
Here's the PR:
Zunicom Announces Cash Dividend On Common Stock
Zunicom, Inc. (OTCBB:ZNCM.OB), announced today an eighty cents ($0.80) per share cash dividend on its issued and outstanding shares of common stock. The dividend will be payable on March 24, 2007, to shareholders of record on March 9, 2007 .
But you have to watch the filings for the ex-dividend date. The ex-dividend date is the date that you must own your shares, before the end of closing. Sometimes the PR will incorrectly state that the record date or the payment date is the day you must get in by. After the ex-divvy day passes, you are free to sell it, and you will receive the dividend.
Check OTCBB.com for the actual ex-dividend date. FYI, as of today, it has not been officially filed.
hey bilgert, take a look at NEGI for example, they gave out their dividend, and on its PR on the Jan 22, it said: -
"payable on February 15, 2007 to stockholders of record as of the close of business on February 1, 2007."
take a look at its chart, you can clearly see that on many people bought on or before Feb 1, and they sold the shares on the Feb 2.
But then the share price only got adjusted on the payable date which is the Feb 15th.
Right what I am saying is I find that quite strange, if I bought on Feb 1, then sold Feb 2 for a minor loss, would I have got the dividend?? and that I dont have to stay on until the payable date??
Surely something is wrong right??
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
FORM 8-K Item 1.01: Entry into a Material Definitive Agreement
December 20, 2006
On December 20, 2006, Zunicom, Inc. entered into an Underwriting Agreement pursuant to which it sold 1,000,000 shares of the common stock of its formerly 100% owned subsidiary, Universal Power Group, Inc. (“UPG”). The sale was part of an initial public offering by UPG of its stock (the “Offering”) underwritten by Ladenburg Thalmann Securities & Co. Inc. and Wunderlich Securities, Inc. at an initial public offering price of $7.00 per share. The Offering will generate gross proceeds of $7 million and net proceeds of $6.4 million to Zunicom at closing. Upon consummation of the Offering, Zunicom will own 2,000,000 shares of UPG’s common stock, representing 40% of UPG’ issued and outstanding shares (assuming no exercise of any outstanding option, including the underw
quote:Originally posted by glassman: FORM 8-K Item 1.01: Entry into a Material Definitive Agreement
December 20, 2006
On December 20, 2006, Zunicom, Inc. entered into an Underwriting Agreement pursuant to which it sold 1,000,000 shares of the common stock of its formerly 100% owned subsidiary, Universal Power Group, Inc. (“UPG”). The sale was part of an initial public offering by UPG of its stock (the “Offering”) underwritten by Ladenburg Thalmann Securities & Co. Inc. and Wunderlich Securities, Inc. at an initial public offering price of $7.00 per share. The Offering will generate gross proceeds of $7 million and net proceeds of $6.4 million to Zunicom at closing. Upon consummation of the Offering, Zunicom will own 2,000,000 shares of UPG’s common stock, representing 40% of UPG’ issued and outstanding shares (assuming no exercise of any outstanding option, including the underw
posted
Stocktrader22- You must hold your share through the pay date because the Ex-Dividend date is the day after it is paid. Please look at the link provided by Bilgert above.
Additional info from Mike at I HUB and my response:
Posted by: MikeS97707 In reply to: None Date:2/27/2007 8:40:02 PM Post #of 28
Here is an update to a valuation post I made a while back. This is using the UPG price of $4.99 where it closed today.
I believe the best way to look at the value of ZNCM is to add the market value of their UPG shares plus the book value of ZNCM corporate and the AlphaNet subsidiary. Using a UPG price of $4.99, ZNCM's 2M shares are worth $9.98M. The book value of ZNCM coporate and AlphaNet would be $30.376M - $16.856 = $13.52M. The sum of these two numbers is $23.5M or $2.47/share.
I own less shares than I did at the peak.
Mike
Posted by: wallymac In reply to: MikeS97707 who wrote msg# 27 Date:2/27/2007 9:10:00 PM Post #of 29
Thanks for the post Mike. I appreciate the DD you have done.
To add to your post. I bought at 1.95 and after the Divy will have a cost basis of 1.15. Your value of 2.47 a share is about where I was thinking post Divy.
The only problem here is that not enough people are aware of this and the fact that this is a 10 Yr old company with the same CEO for the last 10 Yrs.
I think they are undervalued and am happy to have bought in.
GLTA Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
posted
NO, you do not have to hold the stock through the payable date. this isn't rocket science folks..mods maybe include this link in any newbie or FAQ links http://www.sec.gov/answers/dividen.htm
quote:Originally posted by wallymac: Stocktrader22- You must hold your share through the pay date because the Ex-Dividend date is the day after it is paid. Please look at the link provided by Bilgert above.
Additional info from Mike at I HUB and my response:
Posted by: MikeS97707 In reply to: None Date:2/27/2007 8:40:02 PM Post #of 28
Here is an update to a valuation post I made a while back. This is using the UPG price of $4.99 where it closed today.
I believe the best way to look at the value of ZNCM is to add the market value of their UPG shares plus the book value of ZNCM corporate and the AlphaNet subsidiary. Using a UPG price of $4.99, ZNCM's 2M shares are worth $9.98M. The book value of ZNCM coporate and AlphaNet would be $30.376M - $16.856 = $13.52M. The sum of these two numbers is $23.5M or $2.47/share.
I own less shares than I did at the peak.
Mike
Posted by: wallymac In reply to: MikeS97707 who wrote msg# 27 Date:2/27/2007 9:10:00 PM Post #of 29
Thanks for the post Mike. I appreciate the DD you have done.
To add to your post. I bought at 1.95 and after the Divy will have a cost basis of 1.15. Your value of 2.47 a share is about where I was thinking post Divy.
The only problem here is that not enough people are aware of this and the fact that this is a 10 Yr old company with the same CEO for the last 10 Yrs.
I think they are undervalued and am happy to have bought in.
posted
So metal, what are you saying is the answer?
I can say with 99% certainty that you can sell on the Ex-date and get the dividend.
if that's what you're saying also, then we agree. If not, then you're wrong Just kidding, but if you disagree, I'd like to see your logic.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
Dividends Or Distributions 25 Percent Or Greater Than Security Value
The second method, under subparagraph (b)(2) of Rule 11140, provides that for dividends or distributions that are 25 percent or greater of the value of the subject security, the ex-date shall be the first business day following the payable date. For example, if an issuer has announced August 10 as the record date and August 31 as the payable date, then the ex-date will be September 1, the first business day after the payable date. In this example, September 1 is the day on or after which a buyer would purchase the security without the dividend and, therefore, the day on which the price of the stock is adjusted downward. In this example, a seller of the security on August 15, even though the holder of record to receive the dividend, would have to relinquish the dividend to the buyer. Indeed, because the value of the security on August 15 has not yet been adjusted downward to reflect the dividend distribution, the seller in this example would be unjustly enriched by keeping the dividend. The seller would have received the value of the dividend twice: first, as fully reflected in the unadjusted price of the stock on August 15; and secondly, as subsequently paid by the company to record date holders.
This Notice reminds member firms and their associated persons that ex-dates are determined differently, depending on the size of the distribution. Current and historical dividend information is maintained by The Nasdaq Stock Market and can be found on the Nasdaq Trader Web Site at www.nasdaqtrader.com/dailylist/dl_di_ind.stm.
Hopefully this makes it crystal clear. For those that care there is an in depth discussion of this stock on the yahoo message board. It's worth reading.
GLTA Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
I think the confusion is that you are saying you have to hold through the payable date and I am saying you can sell on the ex-date, which is the same thing.
I'm trying to see if Metal is ALSO saying the same thing, just in a different way. in which case, we all agree and we can be happy. If not, we should try to find the point of confusion.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
It's funny how this situation always seems to create confusion. I have attempt to bring some clarity in this situation on other stocks in thepast and have received responses that tell I'm wrong.
We do agree Pcola. What I have learned to take advantage of the situation. When people sell after the record date thinking they will get the Divy I'm usually buying.
You can lead a Horse to water but you can't make him drink.
I do believe that the Divy is just additional value to this stock. You need to keep an eye on UPG, The higher it rises the more additional value here.
Personally, I will look to pick up some additional shares at different points until the 24th and hold them for months or if all continues looks well for the long term. Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
posted
Wally, that's why i bought HMA today. Not sure if you saw, but it's down like 10% in the last 2 days because (I assume) people selling afterthe record date thinking they get the dividend.
i will be watching for a similar drop on ZNCM on 3/9-3/10 to take advantage of the same thing.
Edit: if my HMA point seems like SPAM, let me know and I'll take it out. Just offering up that it's the exact situation that you mentioned about taking advantage of confusion.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
PCOLA--- how sure are you that you can buy HMA today and get the dividend. I know the ex-date is going to be a day after b/c its larger than 25%. But I was pretty sure you had to hold the stock more than 3 business days before the payable date?
Posts: 249 | Registered: Aug 2005
| IP: Logged |
posted
Zack, think of it this way, if you buy and don't hold for 3 days, who would get your dividend under your scenario?
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
quote:Originally posted by Zacktrade: PCOLA--- how sure are you that you can buy HMA today and get the dividend. I know the ex-date is going to be a day after b/c its larger than 25%. But I was pretty sure you had to hold the stock more than 3 business days before the payable date?
I think I understand the 25% or greater Dividend pretty well after doing extensive research. The payment of the Dividend will occur at the close of Market on the payment date. It will then open the following business day less the amount of the Dividend. The 3 day rule is for clearing purposes but in this case the person purchasing on the payment date will get what is called a "Due Bill" meaning that their are owed the Dividend. In no way will anyone be able to get the amount of the Dividend and sell before the adjustment is made on the Ex-Dividend date. Hopefully my explanation is clear enough. I've been through a few of these.
GLTA Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
quote:Originally posted by PCola77: Wally, that's why i bought HMA today. Not sure if you saw, but it's down like 10% in the last 2 days because (I assume) people selling afterthe record date thinking they get the dividend.
i will be watching for a similar drop on ZNCM on 3/9-3/10 to take advantage of the same thing.
Edit: if my HMA point seems like SPAM, let me know and I'll take it out. Just offering up that it's the exact situation that you mentioned about taking advantage of confusion.
Not spam, simply a good example of how the dividend is handled.
Thanks Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
posted
yes you can sell on the ex-d date and still have the div. for divs of 25% or greater as stated above the ex-d date is different. I never knew that and it really makes no sense. even their example makes no sense. weird. maybe someone smater than I can explain why they have the difference. if they just left the ex-d date as 2 days before the record date the 2 example would work out the same. what am i missing here?
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
| IP: Logged |
posted
I sent the NASD an email to clarify why they have two ex-date processes. We'll see if i get a response.
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
| IP: Logged |
posted
metal, that brings up an interesting point.
What would happen if the stock price went up a bunch, to, say, $5, so $0.80 was no longer over 25%. By which rule would the dividend be given out?
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Smile]](smile.gif)
![[Wink]](wink.gif)
Just kidding, but if you disagree, I'd like to see your logic.
