Scharfsinn86
Intro
We wrote about FutureFuel Corp. (NYSE:FF) in May of 2023 when we initiated a ‘Buy’ rating in the chemical & bio-based fuel company. The entry price into the stock was $6.52 per share with the stock’s present price hovering around $4.80 a share. Although this looks like an unrealized loss, we need to factor in FutureFuel’s dividend payments over the past 13+ months or so which have been generous, to say the least.
Therefore, if we include four quarterly dividend payments of $0.06 per share ($0.24) and the special dividend ($2.50 per share) paid to qualifying shareholders in April of this year, our new cost basis becomes $3.78 per share. Therefore, our ‘Buy’ call has returned approximately 27% since our most recent commentary in FF in May of last year.
As we see from FF’s intermediate 5-year chart below, shares have traded in a rangebound manner for quite some…
