This comapany is keeping over half of the earnings. The shareholder has every right to ask why has the share price gone nowhere in five years? It is like they are urinating money into the wind to put it politely.
You think it is management's fault that the rabid lunatics bid the stock's valuation multiple to stratospheric levels five years ago, from which it has inevitably deflated?
As for the company retaining half the earnings, with Return on Equity (excl. acquired Goodwill) in excess of 25%, if they were able to find a home for it, I reckon they should retain allof it.
Because I very much doubt too many CSL shareholders could generate 25% return on their capital by investing for their own account.
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CSL Price at posting:
$258.30 Sentiment: None Disclosure: Held
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