I do hope that RHC doesn't do a "big banks" routine and realise overseas expansion isn't working and "come back" to Australia. Thats about my only worry."
If they aren't generating an adequate return on the capital invested in the UK and France, surely the right thing to do would be to liberate that capital, and re-deploy it where it does generate above cost-of-capital returns? Or, in the event they can't re-deploy the capital, give it back to the owners of the business.
Surely that's a far more shareholder value astute thing to do, than to throw good money after bad?
RHC Price at posting:
$60.24 Sentiment: Buy Disclosure: Held
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