Do you think after the 12 months SWM will get to its desired 10% buy back ? Given so far they only have a handful of shares brought back ? It’s going very very slowly.
If so then next year they are going to have to step up the buy back big time. That would push the share price a lot higher you’d i imagine.
And do you think they’d announce a dividend before buy back is over ? If they did this announcement would push share price up meaning they’d be paying more for shares they are trying to buy back. So you think they’d rather get a chunk of the buy back done before that announcement??
Given all that potentially it’s a pretty good buy at 40 cents then offload at 45-50 cents as SWM fill their buy back??
I think they only need roughly 16 million profit to pay back a one cent fully franked dividend. Pretty achievable to do a 1.5 cent divvy fully franked each half. 3 cents a year. Only need to allocate 45 million profit to do that.
3 cents fully franked at a buy price of 40-50 cents would make this a very very attractive share
SWM Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
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