I dont want a 40 cent capital return. This would just push the...

I dont want a 40 cent capital return. This would just push the share price down by 40 cents. I expected the stock to push beyond $2 on the market hearing that there was a capital return. That did not happen so I dumped it.

Furthermore, if the capital return or part of it is deemed to be an unfranked dividend then its worse.

I rang the company and spoke to the accountant and he said that the company has a lot of carry forward losses to absorb. So even if they make a profit this year and pay a dividend it wont be franked.

The PE is some 39.

All in all I just think there is better opportunity coming up if money is avaiable. SO I dumped this stock.