g’day all. new here. Thanks to Marceau posting on SRK board.I’ve...

g’day all.
new here. Thanks to Marceau posting on SRK board.
I’ve seen this situation before; the market just won’t give full value to small LIC’s. Not sure why, but they don’t. Those expecting divs Might be disappointed in how much. They may well have a large profit reserve, but they only have $1.7m cash and little income generation. Needing cash for $500k liabilities plus ongoing expenses etc, suggests they would only have $500k or so to actually pay out in cash, which is 0.65c/share. the market won’t give them much if they do pay out some decent divs, as it would be a one time thing (unless SRK really takes off and they sell some shares, which is unlikely).
selling some SRK shares won’t happen with the common board of directors. Not sure how they can monetise what they have. Possibilities include an in specie distribution of some of the SRK shares to all holders or maybe SRK just taken them over. Not sure on the legalities of that with the common board and their % holdings though.
I sat in similar companies for years back in the old days and never saw any decent returns. But I think the board need to do something to generate either some cash for decent divs, or some way to monetise that profit reserve.
I’ll do some more work on this one, as I reckon they have to do something sooner rather than later, so might be an ok spec punt. Not sure. I’ll see what I find in the announcements over the last year or so.
cheers,
ned.