Good question.To put things in perspective though first here's some numbers crunched if (hypothetically) cash from last year's dividend was instead used on a buy back.
Note I'm using yesterday's share price but price from July last year was about 5cents lower which would have made a buyback at that time more effective than below numbers.
So the impact of using this cash to perform a buyback would have resulted in an instantaneous increase of about 5% value to all existing shareholders.
Column 1 Column 2 1 Shares outstanding (from FY17 report) 173,161,812 2 Cash dividend (FY17) 5,368,000 3 Current Price (23/2) 0.655 4 5 Shares bought back 8,195,420 6 Shares after buy back 164,966,392 7 % Increase per share ownership 4.97% 8 9 FY17 Earnings 20,155 10 FY17 EPS before buyback 11.639 11 FY17 EPS after buyback 12.22 12 13 Hypothetical portfolio (Shares owned) 100,000 14 %ownership Before buyback 0.0577% 15 %ownership After Buyback 0.0606%
A couple of points:
* The buyback itself would impact price which means that Shine might not be able to buyback at the current price i.e. take above number with a grain of salt.
* There are no tax implications to the buyback, and by comparison only some of last year's dividend was franked. So if you used 100% of your dividends to buy Shine shares on market then you would not have had as good of an outcome.
* If the buyback was conducted sensibly (phased over a period of time) then the 8mil shares might be doable. There have been days since July where almost 8mil shares have changed hands in a single day (though probably not be 8mil unique shares).
That said it could be argued that last year's dividend was paid from debt so you need to offset the above by whatever interest rate Shine is paying - though the debt would amortise and the impact of the buyback is permanent.
Column 1 Column 2 1 Name Number Of Ordinary Fully Paid Shares Held 2 Simon Morrison 42,339,902 3 Stephen Roche 42,339,902 4 Shares held by others 88,482,008
- Forums
- ASX - By Stock
- SHJ
- Ann: FY18 Half Year Results Announcement Date
Ann: FY18 Half Year Results Announcement Date, page-52
-
-
- There are more pages in this discussion • 196 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SHJ (ASX) to my watchlist
|
|||||
Last
83.5¢ |
Change
0.020(2.45%) |
Mkt cap ! $144.6M |
Open | High | Low | Value | Volume |
84.0¢ | 84.5¢ | 80.0¢ | $42.13K | 50.44K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 7723 | 80.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
83.5¢ | 999 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 7723 | 0.800 |
1 | 24997 | 0.790 |
1 | 33597 | 0.760 |
1 | 936 | 0.750 |
2 | 1688 | 0.730 |
Price($) | Vol. | No. |
---|---|---|
0.835 | 999 | 1 |
0.840 | 10793 | 3 |
0.850 | 65684 | 8 |
0.865 | 1155 | 1 |
0.890 | 14633 | 1 |
Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
Featured News
SHJ (ASX) Chart |