The last four years saw options and other scheme of arrangements...

The last four years saw options and other scheme of arrangements given to (mainly the board and mgt) at about 20m shares a year.

So while these options have certain hurdles and exercised at a future date (for that long term incentive)... when it's given out every year, the long term soon enough become an annual bonus event.

I haven't studied management remuneration and details of the incentives so I probably shouldn't comment. Just on the face of it, as a shareholder I really don't like my hires giving away my company to themselves and giving me not very much in return (thus far).

I mean, in the past 7 years the share price has gone up but from the perspective of the shareholder as a single owner... they've put in some $1B and at the end of FY17 might, at best, get a retained earnings of $220M.

So the future have got to do a whole lot better than the track records to make up for the slow payback.

Yea, dividend shareholders can go without if profits are kept back to further grow the business. I actually prefer that to receiving dividends in general.

So my concern is not the lack of a divvy payout. It's about the company not being able to pay dividend. I mean they've been raising and borrowing money all over the place to grow. It's been a while.

I consider myself a long-term investor. The more a stock lag in share price growth, the more long-term I get True story.

Seriously though, Mayne as a quality business will have to wait and see. So far, its track records and purchases haven't perform very well. Again, it's basically a generic drug company... the drugs have a market, are known and proven so all they need to do is manufacturer and promote it properly.

It's not supposed to be pioneers and entrepreneurial where investors ought to put up trucks loads of cash and lots of dreams for that wonder drug.

Here's a chart that break down MYX's ROE... compare it to those of Hikma and Sirtex and it's quite clear Mayne hasn't been up to par.




MYX's DuPont ROE has been below 10% since 2012. Compare to Sirtex at the mid 20s to 35%. Hikma at the high-teens to 30s.

Look at the red bar... asset turnovers for the latter companies remain relatively constant over the years, so were there financial leverage. Profit margin has improved for SRX, also for HIK except the last year when, from memory, it's low because of the one-off costs in acquiring Roxanne and (I'm guessing) wars in the Middle East not being too good for its business there.

For MYX, asset turnover has declined, margin at a lost or stable. So the purchases and acquisition thus far hasn't done well for the company.

This is also shown in the Orange bar - proportion of Retained Earnings to Total Equity. A quality business have this as a larger portion of its financial leverage in making that ROE.


You have shown some information about Walmart, which I regard as one of the best businesses in the world. They have shown excellent growth by executing a great strategy over a long period of time. They are all about optimising the supply chain and increasing customer retention. I assume you know that the Chairman of the Board (Roger Corbett) was a long-time board member of Walmart, advising them on these matters, during that period of growth.
You have shown some information about Walmart, which I regard as one of the best businesses in the world. They have shown excellent growth by executing a great strategy over a long period of time. They are all about optimising the supply chain and increasing customer retention. I assume you know that the Chairman of the Board (Roger Corbett) was a long-time board member of Walmart, advising them on these matters, during that period of growth.

-- Just looked up and Corbett joined WMT in 2006. They've done exceptionally well without him decades before that.

I haven't study Corbett's career but would agree with you that he is a very talented manager. So for him to not been able to deliver for MYX shareholders since 2011...