under valued, page-8

mikes100,

If WAA current options are not exercised then by a re-issue would see them exercised later in 2012 if they increase the dividends to 5.0c & 5.0c next year

This total dividend of 10.0c would give a yield of 8.7% fully franked which should get the share price to $1.15 for the exercise of the options should that be the new expiry price.

With more cash at his disposal Geoff could afford to be a little more adventurous in his investments.

tilleydog,

If the company is unable to make a profit then I would support your idea of winding up a company but when the company is able to increase its dividend there is light at the end of the tunnel & the discount to nta will be reduced over time.

LICs should be invested in more for the dividend stream than a short term capital gain that in some cases is met with a capital gains tax.

In the case of WAA I would think that there is an opportunity for significant capital gain but even if the share price moves up significantly I will not be selling because it is the yield that will keep me as a shareholder.