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06/01/21
05:52
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Originally posted by 1more:
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Just says rebuilding and prepare for longer term growth, not sale. Just my opinion: Cardno is a terrific company. With or without Cresent, Cardno will succeed and continue to ‘make a difference’. (Sorry for dropping their tagline) Maybe I’m just ignorant. — Selling the business is only one way to make a return. — They probably actively trade the stock. — They will want fully franked dividends. — Buybacks are increasing their percentage. — They bought much higher than today — They also bought lower. They will only sell for the right price (who wouldn’t). After spending so long to rebuild, they would to stupid to let go for anything except a very good return on capital — many multiples. — They could make another takeover attempt. — They could make a block trade. — Maybe even sell on market. Who knows If I was them I’d use Cardno extract a regular return via dividends. With today’s low interest rates, even 10% return pa would be worth holding. I have no idea what’s around the corner. I like what I see at the moment and ready if things change.
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No way are they actively trading the stock, nope - Crescent buying in a separate account certainly would breach provisions of the takeovers act. Even if launching a partial takeover for control, beating down the price then launching a full takeover does not.