my order completed at 26.5c and I see it then went down to 25c for a few moments and some lucky person got some.
Well I still have a small bit of ammunition but I am going to wait until June. I personally think it will close out the financial year really low and then climb into the yearly results.
If they did not intend to maintain the dividend I would have thought they would have pulled the half year and just had one. I expect it to be a 0.5c interim and a 1c final all fully franked. Its a great dividend and in fact I think too high for a growth company. Over 8% on current prices and really a bit rich. However if you look at the forecast and take EBITDA as $1,8million which is really on the low side. Then add back around 300K for depreciation and amortization then in fact in a stable non growth environment the business should generate around $2.1 million net cash flow (there is the debtors that we now have to fund the build up for L&R) however interest is around $400,000 so all in all the business cashflow over time should generate around $1,7 million in cash and they are paying out around $1million. On this basis the distribution is in a normal year sustainable. The issue really is that of their $3million cash they will be paying out $1.5 million to the repayment of a loan - a very expensive historical one. They have no bank debt but I bet they are a much better bet at the bank these days. Maybe people dont really understand how transforming L&R will be for them. I reckon they could now easily replace the $1,5 million debt at 10% with a bank facility at around 6.5% and probably get closer to $2 million.
So the dividend is sustainable and I think that they will have to use gearing as an issue of shares at these prices are just far too dilutionary. However I think they are on the right track - Just a bit early for the market to notice. I think that in august and at the AGM if they have delivered on the forecast it may get noticed. What I have learned from this stock is that life is never a straight line.
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Last
41.0¢ |
Change
-0.005(1.20%) |
Mkt cap ! $678.6M |
Open | High | Low | Value | Volume |
40.5¢ | 41.5¢ | 40.5¢ | $235.9K | 573.1K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 508554 | 41.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
41.5¢ | 63910 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 35407 | 0.405 |
1 | 1250 | 0.400 |
1 | 25000 | 0.390 |
2 | 27600 | 0.380 |
1 | 2512 | 0.370 |
Price($) | Vol. | No. |
---|---|---|
0.415 | 63910 | 1 |
0.430 | 20000 | 1 |
0.435 | 55500 | 2 |
0.445 | 39924 | 2 |
0.450 | 227253 | 7 |
Last trade - 16.10pm 30/08/2024 (20 minute delay) ? |
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