Ann: Return of Capital Update and Payment of Dividend, page-45

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AllTheBacon

28 Posts.

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23/02/22

11:33

Post #: 59756999
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Originally posted by Cuppajoe2: ↑

Hi Steve,

Think you are correct that the management has made a very poor decision here. They could have spent $20K with Deloitte or Price etc and had a pretty good idea where the ATO would land.

This is a terrible decision and willfully capital destructive. With the customer concentration, repeated discussions about new products that are "almost there" but every day appear to be more like vapor ware and the sale of the main engine of profit it becomes pretty boring indeed.

And to think that they have taken after tax investment money of mine and tried to turn it into ordinary income so I can pay a 50%+ tax, again, this is just too much.

So while I join you in spirit in letting the management know how much they have let down the side... today I voted with my feet and fully exited the position. Watched this go to 78 last year and kept holding it right down to 42 and todays sale... such is life.

Happily there are other and hopefully better options available at the moment. Part of the proceeds went into SRG who had a very different kind of announcement today. They seem to be progressively de-risking the company and making better capital decisions. I also like the announcement from EDV their covid performance given the number of hotel lockdown days was pretty impressive at least to me. I see scope for both of the companies to perform well over time. EDV as a core holding and SRG as an opportunistic one.

Good luck to all.

Cheers.

Cuppa

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I've got a question for you, one of naivety I'm sure, but why did you fully exit your position now and not wait until the ex date for the dividend (as lame as it is)? I sense I'm missing something obvious here and would appreciate any insights.

Side note, I agree with your sentiment, just curious about the timing.

AVA Price at posting: 39.0¢ Sentiment: None Disclosure: Held
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