what if

Its Friday and I must admit I've learnt not to trade on this day. Caught out holding the baby once too often.

So I let my wondering mind get the best of me and thought I'd throw this up as a hypothetical.

Lets assume that an asset sale proceeds and HAW receives a wad of cash into its bank account. Now the challenges are as follows:

- How to reward holders
- How to mitigate the impact of a major holder dumping its holding subsequent to the sale

So lets join the dots and have a bit of fun speculating.

- A sale is made and the cash received is in the order of 5cps

- The share price rises to reflect this, maybe approaches this value but I wouldn't expect it to over shoot. Little in this market actually does.

- HAW then sets a record date some time into the future where holders receive a one off dividend of lets say 3cps.

- So existing holders are rewarded with an initial capital gain from the current share price.

- New holders would subsequently rush in to position themselves for the one off dividend.

- Liquidity would significantly increase and such a strategy would help put a floor under the share price up and until the chosen record date.

- It would guard against LCY dumping their holding and pushing the price back hence erasing any capital gain from these levels

- HAW would retain 40% of what is received to fund on going works for the coming year(s)

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I was actually thinking abut this as a consequence of the recent MMX transaction with Mitsubishi. In effect they said that the money received would equate to about 50cps.

The price hovered around the low to mid 40's and then when the deal was done, they promised to return some of the funds sometime in the next six months.

So now the price lingers in the high 40's and will surely rise once a statement is made regarding the return of funds or part thereof to holders.

Of course I haven't factored in the following:

- A share buyback or a
- A consolidation

I'm just thinking about how they can put a new floor under the price and refresh the registry.

There will be some who think this is rubbish. Fair enough. There will be others who focus on 5cps and tell me I'm dreaming. Remember, it is just a nice round number to use as an example.

There will be others with M&A exposure who may add their opinions. Please do!!

By the way, if you're a HAW exec and you're reading this. I hope you've already considered this scenario.

Lets see what the tribe thinks.

GLAH