New strategic direction for Female Health

In an effort to establish more sustainable and consistent growth in revenues and earnings, The Female Health Company (FHCO -10.9%) initiates several initiatives to support its growth strategy.

President & CEO Karen King hires Susan Ostrowski as EVP of New Business Development responsible for the company's sales, marketing and sales support functions. Ms. Ostrowski will lead the commercialization efforts for the FC2 Female Condom.

The BOD approves the suspension of the quarterly dividend. The funds will be redirected to growing the market for the FC2, investing in new products, technologies and/or businesses that complement FHCO's current business and to buy back shares.

FHCO will report Q2 results on July 31. It expects to report sales of ~13.7M FC2 units.

Comments (3)
  • Stock_doc
    , contributor
    Comments (359) | Send Message
    Ouch, have to admit, this hurts but may not be the wrong move in the long run.
    14 Jul 2014, 11:08 AM Reply Like
  • wam350
    , contributor
    Comments (173) | Send Message
    In at $9.50+, the only thing good about it was the dividend. Now no dividend, I'll take the lose and get out!
    14 Jul 2014, 11:08 AM Reply Like
  • bradlewski
    , contributor
    Comments (191) | Send Message
    Well fundamentally this was expected because dividends paid by FHCO during the six months ended March 31, 2014 of $4.1 million significantly exceeded cash from operations of $1.2 million during that period and have reduced the Company’s cash significantly. Therefore, cutting the dividend was a no-brainer.


    The big question is now that they have issued a "new strategic direction" how will they redeploy that $2m/quarter cash flow?


    True, this one is a bit small for my budget but with strong management, an obvious moat, and now a huge margin of safety does this company have meaning?


    14 Jul 2014, 02:40 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs