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This company with a negative TBV appears to not be in the business of student transportation but rather in the business of collecting corporate welfare checks from the US government via its M&A tax accounting practices.
This stock looks like the perfect short. They will have to suspend that huge dividend soon which will cause the stock price to plummet.
Can you please elaborate on that last part about collecting welfare checks?
STB buys out companies that have paid taxes on their income. By overpaying for acquisitions STB is able to get the taxes paid by hardworking honest corporations 'refunded' to itself. Sure looks like income redistribution to me.
STB's balance sheet looks like Octomom's balance sheet. But at least those government payments keep coming in, until they stop and then it is all bad...
Balance sheet? Have you taken a look at the off-balance sheet leases? This company is significantly understating its debt.
Also take a look at this article on Gurufocus:
http://www.gurufocus.com/news/192392/is-student-transportation-inc-improperly-calculating-ebitda-in-violation-of-sec-regulation-g
It talks about how they calculate EBITDA (B.S. earnings as Charlie Munger would say). No truly profitable and ethical company ever reports EBITDA in their annual report.
EBITDA is such a ridiculous way to look at a company. Please name one company that doesn't have to pay interest on its debt, doesn't have to pay taxes, and owns some kind of magical equipment that never depreciates? Buffett once said that he avoids companies that talk about EBIT or EBITDA in their annual reports because they are more likely to be frauds. I tend to agree with this assertion.
there are no tax advantages in this deal, you are nuts and besides totally wrong. You arent even close in facts but looking at your returns I can see why. In fact when you take the total return the company has outperformed the S&P 500. Its just a good dividend yield company. I'll be getting my 100th monthly consectutive dividend in May.