If you're not fussed about key person risk, then your statement "The heavy concentration of share ownership is a bit of a risk" seems a little conflicting. They're exactly the same thing. You also state that "David has mentioned he will sell at the right time for the right price" in reference to a potential future takeover. Personally, I've never invested in a business (and never will) with the hope of a potential takeover of the business that I'm invested in.
I actually appreciate you mentioning that, because that was a red flag that I hadn't previously considered.
@spider5 - totally understand what you're saying. David likes to use equity for transactions. I think that he'd look at raisings to pay down debt if required. Personally, I wouldn't be bothered in a reduction of the payout ratio (like yourself). No company can sustain a payout ratio of approx. 100%.
"I know that this would affect the metrics from an investment point of view and those who invest for dividends would jettison quickly" - Too true as evidenced with the q4 dividend payment of 2.5c and the subsequent fall in SP from $11 to $8; But DDR have learnt from that and I'd expect consistent payments across quarters. But you can't do that if your payout ratio is 100%.
Thanks for all your replies. It's an interesting discussion. Like I've said, I really like the business and like you Spider, I'm still a buyer at the levels that you've noted.
I'll leave it at that. Thanks again and best wishes to all.
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