not so smart?, page-8

I called the Company Secretary a day after the results announcement and clearly I was not the only one who was disappointed and surprised by their decision to withdraw the dividend.

From the conversation, I got the feeling that yes it was unfortunate to withdraw the dividend and have a rights issue on top of the news but the opportunity is huge and outweighed the costs. I think FIDO and the B2B leasing in the UK is what they think holds a lot of promise.

Wouldn't it have been better to say pay a 2c dividend and then follow up with a rights issue in a couple of months? Issue some convertible notes, borrow the money short-term with an issue at a better price down the track? I suppose they are staying conservative but I think they could've done better.

Still unimpressed but no turning back now.