Would you argue that the share buyback was likely to do more for...

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31/07/20

13:40

Post #: 46216628
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Originally posted by Mikezal: ↑

I don't think the dividend is the best possible way to attract investors.

If you look at their equity they have a growth YOY and it means they are improving and that is small but compared to other industrial companies on ASX200 is still one of the bests I would say.

They had a 5.5% (763.2 20HF, 720 19FY) growth in their equity even after exiting BICC. That's one of the factors that I would say it shows that they are growing with a good rate.

They also have more work hand than ever which is also a great sign of progress and trust in the market.

In terms of share market, there are so many factors that affect their Market Capitalisation, fear and shorters have worked hard to make sure retail shareholders start believing that they don't grow or they don't worth holding and etc. This make them ready to enter the market and buy shares at a cheaper price and start advertising and etc then raise the price to the moon then start selling. That's a different story.

If you are a longterm shareholder you shouldn't be looking at market price, you should look at their charts and incomes and etc.

Exiting BICC was a loss for every one of longterm shareholders and we all already paid its price and its the time to start supporting our business to start buying more and making our portfolio look better right now when the price is so cheap, and that's how we can manage our portfolio.

GOOD LUCK

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Would you argue that the share buyback was likely to do more for capital appreciation than the equilvalent being paid in dividends given the capital structure of CIM with a free float of < 25%.

10 years ago, the SP traded in the early $30's. 5 years ago it traded in the mid $20's. 3 years ago it traded in the mid $40's then meandered down to where it is today. Doesn't make for a good looking chart and most long term holders would be underwater - not a solid investment thesis or good look for a company of this size.

Imo, CIM should rather use any excess capital to get rid of debt factoring which Mr Market views as creating unknowns with their numbers, and thereafter pay dividends as they do not strengthen the position of the major shareholder and may attract new investors

CIM Price at posting: $21.04 Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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