Sinnet Capital Partners Issues Letter To Franklin Wireless Requesting The Board Return Cash To Shareholders In The Form Of A Special Dividend And A Stock Buyback; Urges Board To Act As A Public Company By Issuing Press Releases To Widely Available Sources
Portfolio Pulse from Benzinga Newsdesk
Sinnet Capital Partners has written to the board of Franklin Wireless (FKWL), urging them to return cash to shareholders through a special dividend and a stock buyback. They highlight FKWL's cash growth from $12.9 million to $33.6 million since March 2020, with no debt and $2.86 per share in cash. Sinnet suggests a $1.00 per share dividend and a $10 million Dutch tender buyback. They also recommend hiring an IR firm to issue press releases for significant events and earnings, noting the lack of national press releases has affected stock performance, which has declined despite significant contracts and revenue growth.
December 28, 2023 | 1:11 pm
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Sinnet Capital Partners is pressing Franklin Wireless to utilize its cash reserves for shareholder returns and improve communication. They propose a $1.00 per share special dividend and a $10 million stock buyback, alongside better press release practices.
The recommendation from Sinnet Capital Partners to return cash to shareholders and improve investor relations could be seen positively by the market, potentially leading to a short-term increase in FKWL's stock price. The call for a special dividend and stock buyback, if acted upon, would directly reward shareholders and could lead to a perception of management being proactive in enhancing shareholder value. Additionally, improved communication and transparency through press releases may increase investor confidence and interest in the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100