No worries Tiger. Wasn't saying that SSM won't be able to pay a FY divi, or that SSM won't continue growing. Was just trying to point out there are risks attached. And because your post was overly optimistic (imo), I decided to be overly pessimistic (to balance things out).
But you are correct in that the banks must be supportive in order for them to lend SSM the money in the first place. I'm guessing they have a lending facility that is not fully drawn, so they can access the extra funds when needed (eg. to pay a divi). The divi payout is very generous too & may be a drawcard for many people.
I still think cashflows are poor though & need to be improved, & that's why I'm not buying yet. Will re-visit after the FY results.
Cheers, Z.
SSM Price at posting:
37.0¢ Sentiment: None Disclosure: Not Held
