Computer Horizons (CHRZ.PK) distributed an initial liquidating dividend of $4 in March, and expects to make another one between $0.68-$0.82 before closing shop permanently. Shares are at $0.525 right now. This is a rough guess at best, but I estimate it should take no longer than a year to make the last of dividend payments, if not sooner.

Shares have languished as the purchaser of one of their subsidiaries is suing for fraud, which the company believes is entirely unfounded (of course). But regardless, the maximum liability to the company is limited to $8mil, or $0.23/share, which, after taking a look at the book value they can reasonably extract and subtracting from this the maximum liability of the claim, still leaves the likely future dividend at $.56-$0.60.

Assuming a 365 day time frame, this would give an annualized return upwards of 7%.

If the suit is without merit, the dividend can be upwards of $0.80, and the annualized yield would be a fat 45%+. If it’s somewhere in between, we’re looking at 15-25%-ish. Like Atlantic Coast Entertainment, a company I wrote about here, this seems a low risk, but uncertainty, situation with the potential for big arbitrage rewards if all goes well.