It would be nice to be able to assume the new base for dividends going forward is $0.38 or any reliable number for that matter. Thing is I don't think we can. The provision for gathering unjustified income is well in excess of $200m. Creating the provision and paying off the mistreated customers is the easy bit. Making a reasonable income from the FUM going forward when some of the past practices are disallowed means that there's no basis to easily or comfortably discern what profit rates might be. Even an analysis of this year's annual presentation isn't completely helpful as, at best, the year is transitional. I feel we should be entitled to a clearer picture going forward but it's not happening. My concern is that the clear picture isn't being provided because the Board, rather than avoiding telling us, is quite possibly not sure itself as to exactly what lies ahead. This stock could finish up being a great one ……. but I can't tell.
IFL Price at posting:
$4.84 Sentiment: Hold Disclosure: Held
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