Yes their response is as good as you could expect.
Right now they are holding all cash - even future proceeds from the property sale...until they can be confident that Covid is unlikely to cause further disruptions. That is prudent and exactly the approach I would expect from The Board.
With regards to how the excess capital is used, in my mind:
1. If the money can be reinvested by the business (whether that be on acquisitions or new ventures) that have a high probability of success and generate a superior ROI then this is preferred. More long term gains and further diversification help ensure Sky TV continue as a going concern.
2. If that is not possible, and the SP is still in the toilet then buyback.
3. If that is not possible (because the SP has lifted considerably) then dividend.
According to the poster 'Ogg' on sharetrader this is all a pointless conversation anyway because a White Knight is going to buy us very soon! Though he has been saying that for about two years now...
Share Buyback, page-29
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Last
$2.47 |
Change
0.090(3.78%) |
Mkt cap ! $340.0M | |||
| Open | High | Low | Value | Volume |
| $2.36 | $2.47 | $2.34 | $18.00K | 7.506K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2634 | $2.39 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.47 | 210 | 1 |
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| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| SKT (ASX) Chart |