it will tank. in 3 trading days. simple. this is a cash handout causing a temp short squeeze/yield chase. no masking it when FUM dives again next month and they are ex-div.
mngt fee revenue in FY24 will be a pale shade of H2 when avg FUM dips to mid $30bn!!....FY24 will be painful to watch, their only ammo is the strong cash on balance sheet which we know will be used to prop up the ailing share price. this trades at such low vol that it doesnt take much to rise or fall by $1...especially when ~70c cashout is being offfered....
Q1: not bothered looking, was there a SP hurdle rate for management rem??? some STI/LTI that triggers some share incentive or bonus? would explain their motivation to bleed the balance sheet to drive SP momentum....worth looking into - i just cant be bothered (if theres no financial incentive for them apart from the divi handout - why deplete your safety net like this??).
Q2: curious to know what will be left in cash after the FY24 buy back and how that will compromise the ability to continue to maintain >$200m in div payout next year...no chance! The BB coupled with low volume will keep the SP artificially propped up, and further cash splashes will ensure they meet whatever SP hurdles internal rem has assigned them....
muppets should have looked at tagging on acquisitions with the excess capital instead, goes to show mngt are incapable and have no other use of the funds but fool the market into the belief that this level of payout is possible.
good luck growing organically - two weeks and the true FUM outflow will be revealed!!
MFG Price at posting:
$10.50 Sentiment: Sell Disclosure: Not Held
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