re: Ann: Metcash Limited 2013 Annual General ... To me the...

re: Ann: Metcash Limited 2013 Annual General ... To me the selloff seems fair. Some very basic quick numbers from a yield point of view, based on page 15 statement saying "Management anticipate underlying earnings per share dilution for the year to be in the high single digits"

FY13 eps was 24 cents, but dividend was 28 cents.

Prior years they have always paid dividends out of earnings.

Let's say EPS drops 22 cents per share (high single digit earnings dilution). Assuming they stop payout out of reserves, but instead stick to the payout ratio of 80% as in previous years, the divvy would drop to 17.6 cents.

Given current sp of 3.28, that's only a yield of 5.3%. Hardly seems appealing compared to WOW (3.8%) and WES (4.5%) when you take the monopoly position of the big 2 into account, especially given WOW has avg ROE of close to 30% for the last 5 years.

More than happy to hear different opinions and corrections, as I currently hold, and am in the process of re-assessing.

Any short term triggers for the SP other than the election?