Pental's manufacturing outfit was never going to be...

Pental's manufacturing outfit was never going to be sustainable in the current economic climate of spiralling production costs. They would have been squeezed on multiple fronts with high wage and energy costs in addition to the big two supermarkets demanding shelf comissions and promo fees.

The business was heading towards a steep cliff and management bailed before it all went down.

The family home analogy is simply a pipe dream because there wouldn't be one in a year or two. The gardener"s fees would have been too expensive, the utilities cost would have blown the lights out, the leaks on the roof would be left unattended and the house would be in a state of disrepair.

So here we are with a capital return of 14 cents and dividend of 13 cents franked. From the average pre sale price of approx 40 cents, the capital recovery is 75% with a possible notional gain of 3-4 cents per share on the last closing price of 19.5 cents once the 7 cent div is paid out.

As an investor, I would have the tax advantage, get back a large portion of my capital and look forward to management's next strategy.

The reality is that HWB is still profitable despite a very challenging market and the $10m cash allows for a possible earnings accretive acquisition.

The idea of a capital light business will without a doubt lessen the burden for any manager in manufacturing, especially when investors are constantly asking for their annual dividend payouts.

Yes I will miss White King, but having cash and a profitable business does help me sleep better.