Stanley Furniture Company (NASDAQ: STLY)
Stanley Furniture Company (STLY), a global wood furniture company yesterday announced two special dividends totalling $1.50 per share which represent a sum of $22.1 million. The board first declared a $1.25 per share dividend that will be payable on August 19th to all shareholders of record as of the close of August 12th. The second dividend is for $0.25 per share which will be declared once the company obtains a revolving credit facility sufficient to fund any shifts in working capital.
Stanley Furniture Company CEO’s Comments
“We are pleased to return capital to our shareholders through a cash dividend, as we believe we have sufficient cash on hand to operate our business,” said Glenn Prillaman, President and Chief Executive Officer. “The additional flexibility of a credit facility will allow us to manage any short-term fluctuations in working capital to support our growth. Our Board believes in the business plan and we expect the next few quarters to show how we have successfully transitioned Stanley from a leader in domestic manufacturing into a profitable design, marketing and distribution company that utilizes a unique strategic overseas sourcing partnership.” Globe Newswire
STLY Technical Analysis
STLY opened trading yesterday at $2.45 which was down from the previous days trading of $2.49. STLY closed trading yesterday at $2.45 and spiked up after market to $3.80, equivalent to a 55% increase from the closing price. Taking a look at the daily chart we can see the last time STLY traded above these levels was on January 27th, 2014 when it traded at $3.80. Taking a closer look at the daily chart we can see that STLY has been in a downward trend dating back to April 20th when it traded at $2.83. STLY has a float of 9.36 million shares and traded below the normal daily trading volume on Tuesday. For trading purposes, I would like to see STLY open trading on Wednesday above $3.35 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Stanley Furniture Company, Inc. designs, manufactures, and markets residential wood furniture products in the United States and internationally. It offers upscale wood residential home furnishings, including dining, bedroom, living room, home office, home entertainment, and accent items, as well as nursery and youth furniture. The company sells its furniture under the Stanley Furniture, Coastal Living, and Stone & Leigh brand names through independent sales representatives to furniture stores, interior design and architecture professionals, decorators, smaller specialty retailers, regional furniture chains, buying clubs, and e-commerce retailers. Stanley Furniture Company, Inc. was founded in 1924 and is based in High Point, North Carolina. Yahoo Finance
