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$4.20 servcorp limited

i am advocating to move to a net debt position to pay the...

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Christos12

3,781 Posts.

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14/06/19

12:54

Post #: 39060641
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Originally posted by tessathedog: ↑

Hi @Christos12. Hmm...I don’t think there’s quite enough cash at hand for a two dollar dividend.
To answer your question, the idea of the cash at hand was to be in a position take advantage of any industry crash by acquiring leases cheaply. The company did this very effectively after the GFC, except (in hindsight) the USA leases we acquired at that time.
The cash at hand was actually a little over 100 million until the last couple of years, when it was accessed to revamp some floors to accommodate co-working in response to the WeWork juggernaut (some of it was also spent on strategic research on how to respond to the heightened competition, and on a share buy back). I would anticipate it might reduce further as the coworking upgrade progresses. I think it is down to around 65 million now. Still good to have, and no debt whatsoever.
There seems to be some significant share price improvement this week, but on no news, and volume whilst picking up a bit is still not substantial so far.

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i am advocating to move to a net debt position to pay the dividend

SRV Price at posting: $3.51 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $4.20		Change -0.010(0.24%)		Mkt cap ! $413.3M

Open	High	Low	Value	Volume
$4.21	$4.22	$4.20	$653	155

Buyers (Bids)

No.	Vol.	Price($)
1	3513	$4.20

Sellers (Offers)

Price($)	Vol.	No.
$4.31	64	1

View Market Depth

No.	Vol.	Price($)
1	3513	4.200
1	698	4.170
1	1000	4.100
1	1402	4.050
1	1500	4.000

Price($)	Vol.	No.
4.310	64	1
4.320	8167	2
4.330	64	1
4.340	65	1
4.360	1500	1

Last trade - 16.10pm 18/07/2024 (20 minute delay)

SRV (ASX) Chart