SWM upgrades, page-18

Yes, that' so true. And I've seen companies in trouble with debts.

But there's another factor - debt service. How many times can the interest payments be covered by their operating cashflow. In Seven's case it is many times over.

When a business produces high returns against a share price, it is far better for management to reduce this pool of shareholders and their units outstanding. High returns means the share price is undervalued comparatively.

1. You're better off buying shareholders when stock price is cheap. Example SWM. AZJ.
2. You're better off diluting shareholders (raise too much capital) when stock price is expensive. Example APT, Z1P, ALU, TPW, LYC.

But then you can do both as well. That's also on the table.