How is nobody talking about this? Verso (NYSE:VRS) has just announced a special one-time dividend alongside its regularly scheduled dividend. Does this mean Verso doesn’t need the cash especially in the midst of a possible decline in its main graphics paper vertical?
Thesis: Verso corporation is undervalued on a book value basis. After the sale of its two factories, it amassed a ton of cash promised to shareholders. This cash will help close the gap in its undervaluation and provide more value.
Verso does not look like it’s in the midst of a full turnaround, especially with its main vertical focus being graphics papers. So, why is it returning so much cash to shareholders and how might this affect its business going forward?
A Special One-Time Dividend to Close The Valuation Gap
Verso just recently announced that it was issuing a special one-time dividend. This dividend is to be $3