Danny any shareholder who takes a critical approach to management like you are doing is in my good books.
However let me put a couple points to you:
It's good form in these circumstances to raise your concerns with the directors and see if they will fix it before sacking them. I see it exactly the same as an employer giving you a warning or just sacking you - not good form more like a constructive dismissal.
You are correct 25% could instigate a first strike against the board, then a second strike the following year but we don't have the numbers to change board composition. It would probably just be minor disruption to them.
If you are correct and the cash comes in the door over the next year, the stock will be re-rated then. The value of your shares does not depend on today's shareprice.
The market may not respond to a higher dividend of they don't believe it's sustainable.
Personally I like very low debt, I like the healthy dividend relative to the price I paid and at the end of the day the stock will be rerated based on cashflows.
We can see over at SGH the consequences of getting into too much debt but I see companies die this way a lot. Sold off as scrap.
I bought into this stock knowing I was a minority so I was happy upfront with the way they are running it. The alternative is that they could pay 0c a share tank the stock and buyback.
Shares issued at $1 repurchased at $0.50c
This is exactly what Crescent are doing over at Cardno.
Or how about Zimi Meka who gets to keep his shares but forces small holders to sell.
The directors own more than 50% of this right so at the end of the day I am along for the ride and I am pretty sure it will be a rewarding one.
Their money comes from dividends more than salary which is ideal.
If you are sure of those cashflows top up and wait a year, whats the hurry?
SHJ Price at posting:
73.0¢ Sentiment: Hold Disclosure: Held
(20min delay)