Cheapest and most frustrating stock on the market, page-2

I agree. Management and the Board don’t seem willing to hand back money they can’t use in the business. Instead they throw it at dubious disrupters and offer no detail about the strategy behind it.

That $40m cash figure is before they “invested” in Honey Insurance. There has been no detail about this investment. Presumably the note doesn’t receive interest and the price at which it is convertible is dependent on another fool coming along to invest and establishing a price. Who does that? “I’ll buy into your business but I’ll let a third party work out what its worth in a couple of year’s time. If nobody wants your business, can I have my money back? Oh, you spent it, that’s a shame”. Seems open to manipulation and pretty naive. So, they have scorched a year’s hard won after tax profits on a punt.

They should have bought some rent rolls at 3.5 times revenue … a business they know about.

Why a special dividend? They’ve admitted they have no compelling investments to make. Make it a permanent dividend at a prescribed percentage of after tax profits (as Graeme55 suggests). That would give confidence to shareholders that they will get a reasonable dividend yield from a terrific real estate business.

Why buy back shares? The top 20 shareholders already control 80% of the company. Buying back shares will crimp the little liquidity that is available won’t it?

I love the brand and the real estate business, I just wish management were interested in just concentrating on that.