Excellent news about the Dividend, which subject to a few...

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28/10/22

20:30

Post #: 64467533
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Originally posted by fcmaster26: ↑

A bit more thoughts on the dividend policy.
It's quite interesting that the company chose to release this anouncement right before AGM. Such a change immediately makes people suspect big Q1FY23 earnings. After all it's been months since we saw the kinda dissapointing FY22 result. No big aura iq sales or major licensing contract was achieved. I guess this anouncement is the management's way of saying that they might achieve those progress that they've been talking about since 2019 in the next twelve month and all the share holders will be rewarded.
I consider this one as a good news. I can't imagine any reason of changing the dividend policy just because the management is confident about the future earnings. If that's the case, they should've done this back in 2021 since they've always been extremely confident. I don't think the purpose of this anouncement is to boost the share price either. It's just not juicy enough.
There is a good chance that we will hear some material changes from AVA in the next 6 months, if not at AGM. But still, I would say don't get overexcited and just jump into it. At least wait until AGM to see if we could get a big Q1 number. This stock is a very quite one with little publicity or liquidity, even with such great growth potential. If you are not holding AVA at present, you can probably still buy in at an attractive price, even after positive anouncements.
I'll post again after AGM.

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Excellent news about the Dividend, which subject to a few assumptions on my part re-affirms AVA as a long-term investment to my Portfolio following what I deemed to be a disappointing failure to update us fully on Aura IQ. Never underestimate the power of compounding dividends over time!

A few comments from me and how I view the policy. Personally I prefer not to measure dividends against an easily manipulated EBITDA but in relation to the cash flow statement and free cash flow . Generally dividends need to be covered X2 from profits to guarantee future flows and is a negative cash flow item. ASSUMING they are not dipping in to the cash balance then surely this is an indicator of future cash flow forecasts? (Cash is King) Even a 'low?' (someone mentioned it earlier) of 1c would give a 4.5% yield currently (im based UK). Certainly not unattractive and hopefully it will become a ''progressive dividend policy''. I am unsure if these will be unfranked or not, hopefully they are to save additional tax for the UK investors.

Any strong growth supported by the large cash balance could also see the possibility of special (or interim) dividends?

AVA Price at posting: 24.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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