I too have been here since the good old days.
She's been a heck of a ride so far.
Love all the future predictions of share prices that come up from time to time.
Some I'd say are on the money, others are relatively optimistic.
Some are foolishly one eyed.
Those are the ones that I believe to be correct.
Regardless of that, there's one point that I think gets missed a fair bit when we talk about the future of Integer.
As an investor, I think it's something that we should all now begin to consider.
What once started as a highly speculative stock (I only invested because it was an MW company initially) looks to be de-risking to create steady income.
If this can happen and we can make it to our $40M NPAT figure, which everybody is confident of achieving, what then for the company?
Any of you who think this isn't going to go global as soon as they work out how to attract the workers in the countries that house the outsourcing centres is mental.
Yes. Mental.
Australia is small fish.
Highly regulated, excellent test market small fish.
If we expand globally and our NPAT begins to grow with it, what do we do with all of our excess cash?
I feel like dividends are what management's end game will be which is partially why the deal has been structured the way it has.
None of those guys are going to sell down their shares unless someone offers everyone way too much money.
I'd like to think at the end of the performance period, we'll all be looking at not only a great deal of money in terms of price growth but on top of that, a cheeky little dividend payout to sweeten the deal.
If you want to have a bit of a play around with those figures, you'll agree that the dividend would be the reward to those that have held strong for so long and can reap the benefits for years to come under an expert management team.
For those curious:
Typical company in growth phase dividend payout ratio ~33%
Annual NPAT figure by end of performance share period ~ $40M
NPAT to dividend payment sum ~ $13.33M
Number of shares in registry considered after smashing milestones ~ 2 bill (Can't remember this one exactly)
Dividend per share ~ 0.666c
Annual dividend payout to 1,000,000 shares: $6,666
If you're like me and believe that these figures are relatively conservative, then you'll be able to empathise with how tight my trousers have become from thinking about this.
Hold onto your shares.
This company is the bollocks.
