CUP what is the real truth?, page-3

I bought more units today. The prospects do seem a little fishy but the shares appear to be good value for money. The drop from the most recent announcement to the low 50's (and those before it) to me seemed due to dividend policy. In reality the board are making good capital management decisions, however the popularity of dividends means the share price suffers. For me this is taking advantage of panic surrounding the drop in income to investors.

I bet if TLS announced negative growth the share price would drop a few percent. In contrast, if they changed the payout ratio from 100% to 50% it would be absolutely dumped. Not too different in the case of CUP (IMO).

Also a reminder that the company has confidence that growth is achievable, which gains credibility with the increase in retained earnings.

If you like technical analysis, the round .50 seems a strong support unless the annual report is bad.