The only way out to break away is that TRS gives that dangling carrot of special dividend of $1.85 (as mentioned in TRS announcement) ex date late next year."
"A special dividend of $1.85 per share equates to a payout of more than $50m, which would out the company's Net Debt-to-EBIT close to 2.5x, based on this year's projected EBIT.
That degree of leverage, combined with the significant lease liabilities would place the company in such an elevated position of financial risk that some might argue that the directors would be deficient in their fiduciary duties if they signed off on a such a dividend.
TRS Price at posting:
$2.74 Sentiment: Buy Disclosure: Held
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