It has been stated by RHI that the company, among other things, intends to commence paying dividends once the initial capital payment is received. I have been wondering what this might mean as it significantly impacts the current value of our holdings.
My expectation is that there will be an immediate special dividend. That is a simple way of getting a benefit to shareholders. I realise that share buybacks are also mooted. The latter are more complex eg. on-market vs off-market etc. I think there is a recognition at the company that long-standing shareholders deserve a quick reward. I am anticipating a substantial fully franked special dividend will be paid quickly. What is substantial? I'm thinking perhaps $1.50 per share. A dividend of that amount would consume around $90m of the after tax cash payment which will be circa $156m and still leave the company with $66m of cash for ongoing activities and future developments.
Given there is another circa $150m net cash payment in prospect maybe 2 years from now, I believe that is quite a realistic scenario and puts into stark relief the low price shares are currently "trading" at. I put the word trading in quotes as I do not believe we are seeing anything like a liquid or transparent market right now.
regards
DF
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Last
$6.62 |
Change
0.020(0.30%) |
Mkt cap ! $422.0M |
Open | High | Low | Value | Volume |
$6.65 | $6.71 | $6.60 | $11.53K | 1.746K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 328 | $6.40 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.59 | 82 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 328 | 6.400 |
1 | 2500 | 6.250 |
2 | 1612 | 6.200 |
1 | 100 | 6.010 |
1 | 450 | 6.000 |
Price($) | Vol. | No. |
---|---|---|
6.590 | 82 | 1 |
6.640 | 3292 | 1 |
6.800 | 3977 | 2 |
7.130 | 1500 | 1 |
8.030 | 2001 | 1 |
Last trade - 14.56pm 29/05/2024 (20 minute delay) ? |
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