VTG 0.00% 8.1¢ vita group limited

Ann: Vita Group Market Update, page-30

  1. 40 Posts.
    lightbulb Created with Sketch. 4
    Yeah I'm out, took the capital loss time to move on

    Was hoping for a 5c dividend in 2 weeks with a 50-60% boost in sp.

    Now VTG know that 97% of their revenue will end in 4 years the best thing they can do is withhold most if not all of that dividend and use it to aggressively expand SHAW. I understand this is what is best for the business in the long run. Unfortunately it is not what is best for the sp in the short term.

    I have no interest in having my capital tied up for that long on a business that has not yet been profitable. It may be announced in the upcoming report that SHAW is now profitable, however I do not think they will counter negative market sentiment to no dividend.

    If they do pay a dividend, good chance they will need to raise money from an spp to fund expansion. A SPP at this price is way to much dilution for my liking, I just can't see any up side for VTG in the next 2 years.



 
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