VMT 3.85% 13.5¢ vmoto limited

Recently I have been known to suggest management would be better...

  1. 1,361 Posts.
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    Recently I have been known to suggest management would be better off spending to increase marketing, sales, and international expansion before paying shareholders a dividend or beginning a share buy back.

    However, just looking through announcements for the last few years, the company raised capital from shareholders (very little) and private investors during the height of the COVID pandemic to ensure it had a safety net and also for company expenses relating to boosting sales.

    However, the company is clearly spending a lot less than they anticipated as we can see their cash balance going up, up up!

    I am beginning to think that this would actually be a good time for the company to reward holders, put money in their pockets, and do what they should be doing - raising the share price.

    I think a dividend or share buyback will do this.

    If I think to myself, "what would Warren Buffet want the company to do?" I think he'd definitely want to see the company returning some cash to shareholders in times of need via paying a dividend or beginning a share buyback which either way would add value to the share price and the company would still have ample amounts of cash on hand for expansion costs.


 
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