You say 'last time'? I presume you mean the last full year results announcement, mid-August last year, when they confirmed no dividend again.
Well, let's get the facts right. The stock was sitting at or around 47c at that point. By early November 2021 (2.5 months later) it had moved up to 68c (+44.6%). Didn't look like it tanked to me!!!
This was because the market was more interested in the restoration of strong earnings, confirmation that cost-cutting was well advanced and, most importantly, evidence that net debt was well down and under control. It was rerated for these reasons and all these factors are very much still alive. It was rerated because it was in a much healthier position than for many years. Since then they have enjoyed a further year of good cash generation and the balance sheet will be it's healthiest in the time I can remember (15 years at least). Expect a another re-rate with or without a dividend
SWM Price at posting:
48.0¢ Sentiment: Buy Disclosure: Held
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