I think the strategy has always been, and will continue to be, that they will just sit on the $100 million cash pile until such time as a clear expansion opportunity presents itself. This will require a distressed market where long term leases can be snapped up cheaply. That’s what they did in the years after the Great Recession. They executed that very well, except that the unfortunate US leases entered into during that period unfavourably impacted on the overall success of the initiative.
But they are commendably patient about this, and won’t expand significantly in the meantime. They’ll just keep doing a bit of gradual adding-on here and there, preserving the cash pile for the day when a truly distressed market represents itself.
I would rather they take this more conservative approach, especially when investment yields are now such that the income from the cash (around $5 million) is actually adding meaningfully to annual profit. I certainly don’t want them giving it back to me, as I’ll just spend it, and then it’s gone
