Why holding so much cash?, page-3

69 million is hardly a lot of cash for a company with this market cap is it

Yes Synlait are the supplier but they don't pay logistical costs to get to market in the US UK China do they synlait make an package the IF they don't do the marketing branding an roll outs

There is friieght supply chain regulatory costs safety of product costs admin salaries wages as the business grows so do these costs

Then there is marketing to expand new markets at the minute they are only in California if they intend to go further it will cost

Then there's the premium they Pay at the farm gate they surely are making provision for the legal case

69 million is not enough to start paying a divvie this year in my view FY 18 if they continue to grow would be better

In my view they should raise capital to bolster the balance sheet if they do I would see that as a positive

Then there's left fields events etc yes a2 has done a great job growing the business yes EPS FY 18-19 looks great FY 17 ok as synlait address supply

Lots of things need to be addressed they are only a relatively new listed company I see no rush to pay a divvie some may see that as a negative In the growth stage

There are many Coys with huge cash reserves they don't pay a divvie instead they look for merger an aquisitions to increase earnings

Divvies way too early in my view not enough cash to justify that