Holding cash.

Afternoon all,

as it can be reasonably expected for AJX in the next several years to be a large free cash generator - we already have ideas from people saying that dividends are good whilst others say that paying dividends is a bad idea.

Of course - it completely depends on whether you have a low asset company or not and high or low margin.

That said - a lot of institutions believe in a broad brush  - paying dividends is bad.


Well - here is that stupidity taken to extreme lengths  -

http://gawker.com/companies-are-stashing-so-much-god-damn-cash-overseas-1777847561


My take on it is that some of those (possibly all of those) companies in the article should share out a lot of that spare cash to their shareholders - the owners of the companies.

To me - it is complete foolishness to store such large amounts of cash ------ absolute foolishness.

IMO - when you have so much cash all you can do is to squirrel it away hiding - it is well past time when you should be returning it to your investors.

Remember that mass of cash that BHP had years ago - well, now the value for shareholders has been devestated - whilst before this - shareholders could have reaped far more benefit from larger payouts which have now just been peed up against a wall.

Lets not do that with Alexium

have a great weekend all