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Leica closes record year, pays dividend


ho_co

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:confused:The "shareholders" i.e. Mr.Kauffman have invested millions upon millions in the company. Is it that unreasonable for them to get some return on their investment?

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... and instead of utilising the profits for R&D for the long promised solution for R-lenses users, they are shoving it up the 'arrises of the shareholders.

 

This way, Leica will never achieve sustainable growth - I give them another two years...

 

Cheers,

Uwe

 

Perhaps just a little over-pessimistic?

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you pay shareholders through higher profits that come from higher returns on capital. when you pay a dividend you are effectively saying the firm is overcapitalized. when it is really overcapitalized you buy back stock. paying dividends is the equivalent of a firm saying they have no use for the funds. this is a lazy view of the prospects of one's firm -- today's products are just fine. a dividend may be nice for the shareholder, using the capital to make better, broader, cutting edge products is better. leica was a revolutionary at the start by introducing the small high quality camera. the revolution has long been ceded to others. today, leica is just trying to sustain its original product using new technology. wonderful for me. for the long term viability of the firm, using the funds to produce the next revolution would be better.

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you pay shareholders through higher profits that come from higher returns on capital. when you pay a dividend you are effectively saying the firm is overcapitalized. when it is really overcapitalized you buy back stock. paying dividends is the equivalent of a firm saying they have no use for the funds. this is a lazy view of the prospects of one's firm -- today's products are just fine. a dividend may be nice for the shareholder, using the capital to make better, broader, cutting edge products is better. leica was a revolutionary at the start by introducing the small high quality camera. the revolution has long been ceded to others. today, leica is just trying to sustain its original product using new technology. wonderful for me. for the long term viability of the firm, using the funds to produce the next revolution would be better.

 

Where does this announcement say there's no R&D?

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... and instead of utilising the profits for R&D for the long promised solution for R-lenses users, they are shoving it up the 'arrises of the shareholders.

 

This way, Leica will never achieve sustainable growth - I give them another two years...

 

Cheers,

Uwe

 

Since the company has very few shareholders other than Andreus Kaufmann, who pulled them from the brink of extinction singlehandedly I'd say it's his money to burn as he chooses.

 

5 million out of thirty is hardly a major chunk.

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you pay shareholders through higher profits that come from higher returns on capital. when you pay a dividend you are effectively saying the firm is overcapitalized. when it is really overcapitalized you buy back stock. paying dividends is the equivalent of a firm saying they have no use for the funds. this is a lazy view of the prospects of one's firm -- today's products are just fine. a dividend may be nice for the shareholder, using the capital to make better, broader, cutting edge products is better. leica was a revolutionary at the start by introducing the small high quality camera. the revolution has long been ceded to others. today, leica is just trying to sustain its original product using new technology. wonderful for me. for the long term viability of the firm, using the funds to produce the next revolution would be better.

 

They are keeping 25 out of 30 million Euros in the company (after taxes). Compared to last year's total net income of 3.2 million Euros this is an increase of 8 times!

 

I am sure Leica is securing it's operations, spending wisely on R&D, and cautiously preparing for increased production to keep up with a growing demand.

 

There are limits to how much work a small company can take on. They can only interview, hire, and train a limited number of people per year - whether in production, sales, or R&D. I am sure Leica has taken all of this and more (financial considerations) into account when deciding how much it is wise to keep in the company and how much is a satisfactory dividend to shareholders.

 

Even if you have ample opportunity to spend the money you will need resources to do so. As they are a limited number of people in the company I bet they said "the money may as well stay in the shareholders bank account as ours" - and everyone is happy and feels secure.

 

The little financial information in the press release revealed very good news, in my eyes. The last two years have been extremely successful for Leica. With the investment I have made in the M-system I take this as a good thing and have increased hopes for the future/longevity of my purchases.

 

Personally, I cannot wait to see what comes out of the 25 million Euros left in the company: increased production, new systems, new lenses, new services? Who knows? But I sure am hopeful and curious:)

 

If one had to be first with a type of product to be successful there would be very few computer technology companies outside the US today. Leica can pick mature markets to enter if they think they have something to offer. What great opportunities for Leica. Exciting it is:)

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If one had to be first with a type of product to be successful there would be very few computer technology companies outside the US today. Leica can pick mature markets to enter if they think they have something to offer. What great opportunities for Leica. Exciting it is:)

 

The US invented computers?

Where did the US camera industry go?

Leica management have made curious decisions, and the share holders paid, the share holders bought the shares in the first place, the money is not Leicas money, the company is not owned by Leica.

If I was a majority share holder, I'd have some people standing outside company buildings with a cardboard box, to follow.

If they were making chocolate mice I'd not buy one.

 

Noel

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you pay shareholders through higher profits.

 

Yes. The shareholders receive part of the profit. That's what dividends are. :D:D

 

If there were no dividends, the shareholders would be silly to invest their money into a company instead of simply placing it into an account in a bank.

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To make money as a shareholder, either you buy low and sell high – that’s speculation. Or you keep what shares you have and reap the profits in the form of dividends. That’s investment.

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... and instead of utilising the profits for R&D for the long promised solution for R-lenses users, they are shoving it up the 'arrises of the shareholders.

 

This way, Leica will never achieve sustainable growth - I give them another two years...

 

Cheers,

Uwe

 

Kauffman at least stick out his neck, did the right thing to make Leica survive. It's quite normal that there is a dividend after succes.

 

Did you stick out your neck once in a lifetime in business? It's a matter of sowing and harvesting.

 

Probably there is not much trust in the relaunch of the R sytem (digital), maybe because most Leica users are M shooters.

 

Leica will always be a niche player, thats part of their image & marketing. Normal DSLR is a overcrowded segment.

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with all due respect to those that have responded, that 5 million euro could come in handy someday especially if it is compounded. as for paying the investors, apple pays no dividends and the performance of the stock has rewarded its shareholders mightily.

 

the more cash on hand the more latitude you have for r&d and developing new products down the road. you also have some money set aside for a rainy day. excess profits, in the true economics sense, is no excess, but an extra reward from the market for something new and innovative. as others see the earnings they catch on and invade your turf, x100 anyone, profits subsequently narrow, and you will then wish you didn't ship those excess profits out the door in dividends but had used them to build better and stay a step ahead.

 

steve jobs thinks that way. and if you think leica is not a hi-tech firm so it doesn't apply think again -- it is, whether it wants to be considered that way or not.

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... that 5 million euro could come in handy someday especially if it is compounded. as for paying the investors, apple pays no dividends and the performance of the stock has rewarded its shareholders....

 

Leica is paying dividends for the first time in 14 years. What's the compounded profit on that? And what's the going rate for Leica shares in the stock exchange?

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