Trending
Stocks.org
You are at:»»The Female Health Company (NASDAQ:FHCO) Drops to 2-Year Low; Stops Dividend Payments

The Female Health Company (NASDAQ:FHCO) Drops to 2-Year Low; Stops Dividend Payments

539
By on BioPharma

The Female Health Company (NASDAQ:FHCO) shares fell to their lowest level since March 2012 after saying it will suspend payment of its quarterly dividend and devote cash flows to strategic initiatives in an effort to boost growth. FHCO was down nearly 9% in recent trade, having earlier hit a low of $5.05. The 52-week high is at $10.13.

The maker of the FC2 Female Condom said it will invest in marketing of its the condom and will evaluate investments in new products, technologies and/or businesses that complement the core competencies and strengths of the company.

“We believe the risks associated with a single product offering, along with the significant volatility in purchasing patterns for FC2, can be mitigated by the presence of a more diversified portfolio of business activities,” CEO Karen King said in a statement. “We believe the company can leverage its experience and success with FC2 by embracing complementary technologies or product opportunities, and the process of assessing such strategic options is already underway.”

King said the company may also use part of its cash flow to buy back shares, without offering additional details. Meanwhile, the Female Health Company said it expects to report sales of 13.7 million units for fiscal Q3 ended June 30, up 9% from the year earlier and up 88% from fiscal Q2.

Get Free Updates and Stock Alerts!



*We only send one email per week
Share.

Related Posts

Get Winning Stock Alerts!

Our track record speaks for itself! Our last 7 alerts have delivered combined gains in excess of 300% and there are no signs of slowing down. Join UltimateStockAlerts.com now before you miss out on our next big runner!

We will never sell or share your information.
Close