New management have stated frequently in recent times of their intendion to reduce the current absurb 80 days plus, settlement terms for its retail customers.
Bring theses terms back to much closer industry standard time periods of say 45 days (over 3 years)...would generate an extra $60m free cash flow PA, for the company (tax free of course) and reduce the rewards debt to half of its current $500m.
Interest saved with a reduced settlement terms, would also be very significant.
Company could easly return 10 cent plus annual dividents to investors (as stated in the press)
Market place.....at these share price levels... has got this stock completely wrong in my view.
Sceptical about my views on this stock.....then why not search Financial Review for a recent story whereby funds manager and Sigma number 1 shareholder....Orbis Investment are hinting at rolling the board if a dividend around 35 cents is not paid now (ie post 31st Jan $900m payment from Aspen.
Financial Review are keen to retain copyright on their stories...so not to be reproduced here.
SIP Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
