"I'll take a chance and wait for the SP to fall below $1 once(if) the dividend is cut after the release of the 1st half results. Current dividend is unsustainable and they can't keep borrowing to pay it."
Oh, I think it is a given that the dividend will be cut.
But I don't think anyone who is half awake will be surprised by that.
So you don't think a cut in the dividend is already factored into the share price?
For example, I expect EPS this year will come in at somewhere between 10.5c and 11.0c (cf. FY2017's 12.5c).
From a cash flow point of view, without increasing its Net Debt position, the company could afford to retain the payout ratio at 70%, implying FY2018 DPS of 7.25c (down from FY2017's 8.8cps).
And 7.25c equates to a 6% dividend yield on the current share price.
And it equates to a 7.3% yield on your sub-$1.00 entry price.
It may reach a dollar, but I'm not sure how, unless profitability gets crunched to half of its current level (that would place the stock on a P/E of around 14x to 15x.)
And for the profits of this company to halve, would mean that there is something fundamentally broken in this business.
In which case one probably wouldn't want to be owning it at $1.00, anyway.
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