The company probably has a book value of 50 to 60c depending on how you value franking credits.
The worse case is management and Board do nothing and spend it on themselves until there is nothing left. Unlikely as CEO is leaving and new Board members were put in place by the largest shareholders.
Best case is the new Board and CEO grow the business and it is worth more than the book value.
thunderhead1 is pointing to the more likely scenario of something in between.
The largest shareholders have tipped in a little more cash in a final roll of the dice for everyone involved with this business.
With a multi-year time horizon, I'm not surprised or worried to see the price drift lower and an increase margin of safety.
TGA Price at posting:
22.0¢ Sentiment: None Disclosure: Held
