Re the dividend I've been thinking there are 4 possible outcomes...

Re the dividend I've been thinking there are 4 possible outcomes for this report:
- A continuation of the status quo. No dividend but some words about it happening "soon"
- An announcement they'll start paying a dividend next year
- A quarter of a cent per share
- Half a cent per share

I have thought at times it would be nice to get some cash back, but after thinking through my reasons for investing in this company I've come to conclusion that the first outcome above - the status quo - is my preferred option.

If he pays a dividend its surely not going to be more than half a cent per share, which would deplete his cash by $2.36M. If he commits to paying dividends bi-yearly from now on that's 5 million coming out of the cash balance annually. Longer term I would welcome this, but not now.

There should be some potential investments in China selling cheaper in the next couple of years as the slowing economy and turbulence in both the property and share markets rattles the cage. I'd rather his powder was dry to take advantage of that.

If he pays a dividend of half a cent then all that is likely to happen is the share price will go up to between 10 and 20 cents per share for long enough for most of the people on the forum to sell out.

The result we all should be hoping for is re-investment to grow the company, divestment of shares by the man when the escrow period ends to some institutional investors, a broadening of the executive team to mitigate the one-man-band view of this firm by most institutions, and also organic growth coming out of the strategy of buying stores from franchisees.

The upside from this outcome is far, far greater than any short term bounce from a dividend.

Imagine earnings doubled and a more normal PE ratio applied by the market.

IMHO