G’day all. I’ve been against divs, but thinking more on it and knowing the IO party could end at anytime (unlikely soon, but s##t happens, so possible), I think a small div as suggested 3-4c sounds like an ok idea, as long as they don’t have a killer acquisition that needs lots of cash. $10-20m cash to div, is quite manageable and leaves plenty for other stuff. It would be replaced rather quickly at the rate they’re shipping with IO price >$200. a statement that they’re intending to distribute say 20-25% profits going forward, would put them in a different bracket, that would attract div focused investors. A one off wouldn’t have my impact. Yes, divs wouldn’t last if IO turns down, but there’s strong evidence we have at least. 1-2+ years (without an X factor). Market doesn’t look that far ahead. so a bit each way for mine. enjoy your Sunday all. cheers, ned.
FEX Price at posting:
41.0¢ Sentiment: Hold Disclosure: Held
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