Dividend !, page-14

Hi Smug @SmugLex

Dividends, It has been indicated that they most likely will not, but not concretely ruled out. Their public records has three keywords; Dividends, Buybacks, and Investment. So far, they've invested money. Synlait being one of them.

I personally believe that they'll not give money out in dividends even though they've got franking credits percolating out of their skin. This would be a bad strategy as well as shareholders might get less than 1.5% return on their money before taxes and bond market provides more return than that while being extreme low risk. A well executed currency hedged or unhedged treasury bond market strategy chasing capital gains can even deliver between 3-7% a year. I don't want to open this box now.

I think, this is the exact reason they've hired Ms Jayne Hrdlicka for. Finding high IRR assets and turning the US strategy around. She's a born American (perhaps still a US citizen) and with a degree in Mathematics, it looks plausible.

I'll be selling out of my A2M stake if they decide to give money out in dividends by talking up franking credits.

I'm interested to know should this uninvited news be announced, what would you do?

LASTLY
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My EPS forecast is between(AUD) 0.39 - 0.418 cents per share. A large range as I'm unable to model currency movement impacts.