I enjoy your posts dannyboyLAIC
When you look at the last 12 years of earnings, not to mention the balance sheet & B/V 0.65, SHJ appears to be the most undervalued company on the ASX. I took the time to analyse all 2100 companies on the ASX which led me to SHJ. Today's announcement supports my theory that SHJ will continue to raise both the interim and final dividend by 0.25c for many years to come.
I bought a significant stake in SHJ, but even as a top 20 holder, I am finding that there is little that can be done to influence the board. Resolutions pass at 98-99%, I seem to be the only one who votes against them. Between Simon Morrison and Stephen Roche, they control 51% of the company.
I am reaching out to other major stakeholders in an effort to do just as you suggest, pressure a special dividend (I asked the board about this and got a non-answer) and question the approach to WIP. Beyond this, there is little that can be done. In time, it may not matter. As you illustrated, the balance sheet is bursting at the seams and eventually this will lead to a special dividend or a share buy back if prices stay low.
SHJ has averaged 12c of earnings over the past 12 years and will pay out almost 5c this year in dividends. In my book, that's worth at least $1.20, so I am loading up the truck, buying as much as I can at these discount prices.
Another interesting thing I have noticed in SHJ is shareholder concentration. In 2015 there were roughly 2500 shareholders, today there are less than half, under 1200 shareholders. No one is paying attention to the company right now. It's only going to take one or two more people to buy a portion of the 18m "balance of register" shares (90% of SHJ shares are owned by 20 entities) to cause a spike in the SHJ price. Until then, I'll enjoy my 5.5% dividends and comforted by the 237m book value vs 155m market cap.
