Redabyss
Its scary that you are investing in a company that you don't know anything about, however it is basically an IT company that has a few arms - either managing other companies computer equipment and applications, selling IT Hardware/software or doing IT consultancy. Very entrepeunerial but hopefully they have learned a few lessons from the school of hard knocks along the way - ie cash is good, dividends are good too. etc
Unfranked dividends have been paid because the company made a lot of losses in prior years as MXS. Tax losses are almost all used up so dividend yield should start to drop as the company now has to pay tax, however they should soon become franked dividends so same net result.
There have been a number of acquisitions that will be putting stress on the small mgmnt team and I'm sure the market is concerned as to the effectivness of these purchases. Managing director sold a big chunk of shares in 2004 which would have added to market nervousness.
If I still held, I'd be watching closely and would be prepared to jump ship if technical barriers are breached. I got in at around 14c (when it was MXS) and existed at 29 after seeing it hit 37c. Got 4.5c dividends in the 12 month period so it was a nice investment.
High risk , potential high return
Cheers Zinc
SNN
sonnet corporation limited
