I agree with your sentiments but I think that the market is disappointed, as am I, that this announcement is so cautious. TGA had $114.3m free cash at 31 Dec, which after the recent 7c dividend still leaves $90m free cash (plus $18m cash tied up in the warehouse). If the full 5% BB is done at as high as 30c, that would only use $5m cash. They should have gone for the max permitted 10% 12 months. I’d hoped that over coming months TGA would return much more cash to shareholders. I’m worried that TGA may spend a lot of its huge cash balance pursuing acquisitions or business finance expansion in a very competitive market. That might eventually add value in 2 or 3 years time, but I’d rather have a bird in the hand.
