Had to buy more. 9c make a market cap of $8.4M.
They could pay us 6.5c fully franked dividend which would cost under $6.1M. They already have the franking credits, so grossed up it would be paying us over 9.2c in dividend versus the current 9c price.
At 31/12/16 they had $7.44M cash so can afford to do it and they should still have another profitable 6 months ahead for 1800- reverse.
The risk with this co is when 1800-Reverse is no longer profitable will the employee benefits expense still be over $1M per annum while the company holds no assets generating enough profits to cover these wages and other expenses.
Some direction form this company would be appreciated showing some prudent capital preservation measures.
Or just give me 6.5% FF div and do what you bl..dy well like.
REF Price at posting:
9.0¢ Sentiment: None Disclosure: Held
