69 million is hardly a lot of cash for a company with this market cap is it
Yes Synlait are the supplier but they don't pay logistical costs to get to market in the US UK China do they synlait make an package the IF they don't do the marketing branding an roll outs
There is friieght supply chain regulatory costs safety of product costs admin salaries wages as the business grows so do these costs
Then there is marketing to expand new markets at the minute they are only in California if they intend to go further it will cost
Then there's the premium they Pay at the farm gate they surely are making provision for the legal case
69 million is not enough to start paying a divvie this year in my view FY 18 if they continue to grow would be better
In my view they should raise capital to bolster the balance sheet if they do I would see that as a positive
Then there's left fields events etc yes a2 has done a great job growing the business yes EPS FY 18-19 looks great FY 17 ok as synlait address supply
Lots of things need to be addressed they are only a relatively new listed company I see no rush to pay a divvie some may see that as a negative In the growth stage
There are many Coys with huge cash reserves they don't pay a divvie instead they look for merger an aquisitions to increase earnings
Divvies way too early in my view not enough cash to justify that
A2M Price at posting:
$1.74 Sentiment: Sell Disclosure: Not Held
(20min delay)