probably, but either way by the powers of deduction we will see who the trader is.
This stock need not trade at this level, despite the market meltdown. The only reason it does is because they elected ot to pay a final ( gave no reason), and have given no dividend guidance. Perhaps a little broken pronmises on several previous earnings guidance as well.
Suspect Teoh does not want nor need a divi (just received cheque for $150m). Partially because stock held in personal names and needs to pay the top up tax but also because he does not want a company with debt so would rather accelerate debt repayment.
My view, which I have promoted to the company, is that they should introduce a dividend reinvestment plan, then pay the maximum franked divi. activate plan and if Teoh and WSP reinvest, that represents 68% retention for debt repayment alone. Probably many others would reinvest at these levels (might even get to 80% reinvest, in any event can underwrite to whatever outcome they desire) , moi included. But the real effect of this is that they will achieve debt reduction goals and also double the share price.
really up to the directors to see common sense.
Let's hope they do!
SOT Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
