Thanks for all your comments on many stocks. Always a source of...

Thanks for all your comments on many stocks. Always a source of interest to myself and I believe many others.

I have wondered about a few things within this stock. They are:

1. It must need to acquire another business to make the national footprint. That has to be a gut feeling as it is always hard to work out what would make the operational cost put pressure on the bottom line in each location. That is also impacted by the fact that it seems to have manufacturing and distribution locations so it's really a complex issue. I would just think that a steady rate of turnover around $10 million a month would seem to suggest that it would be better than the $5million plus they are on at the moment.
2. The substantial shareholder list is 4 deep and is just over 32%. The largest PPT has been selling and I noticed today they cleared a few lines buyers to get out of a few. This stock cannot really afford to have these institutional holders drop to under 25% and yet the largest is struggling to sell as the volumes traded are not such that they can sell down at any reasonable pace. This overhang is a concern for me.
3. Given number 2, I would have preferred them to retain more cash and maybe do a buy back now at lower prices and let the EPS do the talking. The dividend in my opinion is far too high.
4. I see they moved to a debtor insurance scheme and immediately took a $700K writedown ( refer 2020 AFS). That is very normal but does suggest that they are looking at ways to reduce risk to the P&L, which is further influenced by the half-year presentation slide 8 - which seems to outline that they are looking for cost savings coupled with a bit of increased capacity. So robotic equipment, energy ( both gas and electricity) plus IT cost savings are the focus of reducing the costs involved. That is a cost out process. Good for a while but sort of defensive as that doesn't last.

So I am left with the thought that there is a lot of opportunities but 28c dividends are just too high on 36c eps.

In the back of my mind is that this company listed in 1970 and is still too small to have a market cap of $100 million...

Any thoughts? Am I wrong?

This is a hold because I got in at $4.00...