Ann: AGM Address and Presentation, page-6

I'll chip in my 2 cents....

This stock came to my attention only a few weeks ago, it's one I have on my radar now for a high yield play. However, there are a few things which are holding me back:
1. The past share price graph, it's clearly in a downward trend, which has definitely not broken as of yet, good chance this is going lower before it goes higher.
2. The yield is great if you base this off it's history, but the past is not the future and there has been 1 1/2 years of dividends to date which isn't much to go off.
3. With interest rates rising I think it's fair to say it will have an effect on margins, how much is yet to be determined. The annual did have some decent clarification on the protections in place, however the second half profit did show a drop (47% of annual profits) and interest rates only starting rising at the tail end of last FY very marginally.
4. With interest rates and potentially higher bad debts going to dampen profits, with limited trading history on this company, we don't know how it's going to hold up.
5. Also, I attended the AGM, the chairman stated the dividend payout ratio they are looking to pay in the future is between 40% - 80% of earnings. So if we do see a decent drop off in profits (say 25%) and a dividend payout ratio reduction "due to harder economic times" then we could see a far lower share price.

I'm looking to take a punt on this if we see the share price around $2.50, this would be a 20% unfranked yield based on the previous years dividend, plus the SP would need to level out and break trend. However, I'm holding back for the next 3 months and potentially awaiting the next half yearly report.