franking credits

At the AGM yesterday Justin Braitling mentioned that they already had enough franking credits to cover the next two dividends.

When ALF borrow stock they have to pay the dividends back to original stock owner but not the franking credits because, as I understand, the owners of the stock cannot claim franking credits, probably because they are not Australian tax payers.

This means that they could, in theory, borrow a stock, say NAB, sell it, then buy it back at the same price & still make a profit because of the franking credits.

The method of borrowing stocks, selling them & using the funds to go long in superior stocks has proved to be a real winner.