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These are my personal opinions, not financial advice and I hold no position in this stock.

Last week, Opera stock gained 13% after announcing a $0.80 per share special dividend.

In theory, this makes no sense since the dividend amount will be adjusted out of the share price when the stock goes ex-dividend.

But in this case, there is some logic.

First, Opera is growing nicely, with expected revenue growth of 29% this year. That makes the shares look good value at the 10 times multiple.

Second, investors have long been concerned about the company’s board and its variable interest entity structure.

But governance is starting to look better and the company is now returning excess cash to shareholders via the special dividend.

The Opera browser isn’t a threat to existing stalwarts like Chrome and Safari. But even so, there should be good demand for a niche, independent web browser and Opera’s recent financials are improving, both in terms of overall growth and margins..

The company is still small and the earnings multiple could easily expand therefore I give the stock a cautious bullish rating.

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