Summed up perfectly jaluma! Very encouraging commentary from the...

Summed up perfectly jaluma! Very encouraging commentary from the Chairman and CEO; a welcome change.

Meeting targets will regain investor confidence and more importantly if there is a return to dividend payments. If the half yearly financials suggest all is going to plan then there is no reason why the Company can't pay an interim dividend considering that they have significant cash reserves. It would seem safe to earmark at least 0.5 cent dividend per share costing $1.281m for the interim payment. Then if the final financials meet the revenue growth and cost saving targets then the final dividend could be increased to 0.75 cent per share costing $1.922m for total dividend payments of about $3.2m for the full financial year. At a share price of 10 cents this would represent a yield of 12.5% and Corum have tax credits in hand so it could possibly be fully franked. If this eventuates then it would be reasonable to see the share price return to its level of several years ago in the range around 15 cents.

Ignoring Bill Paterson's holding it was pleasing to note how the top 20 shareholders have remained very much intact for a total of 84% of shares issued. They will be rewarded for their patience and there won't be a lot of market liquidity as new investors look to take positions.

I guess the proviso regarding a dividend payment is whether the cash is required for a good acquisition.