I feel there will be a fork in the road and I’m not sure which way DVP/BB will go.
Option A) use cashflow to keep being opportunistic and buying distressed assets, turn them around and build a possible ASX50 company. They have the pedigree and skills, they have the ego. But he has stated he doesn’t want to do this. Was that just a statement to take pressure off?
Option B) keep the dilution low, roughly 275m shares. Build decent cashflow from mines and mining services, have a high payout ratio (fmg) and line the pockets. He has stated the only way he makes money is from divvies. $1 divvy only costs $275m plus plenty of tax losses for the franking credits.
Doesnt need the money, so what’s the motivation?
Either way, it’s a fascinating journey and I can’t wait to see where we are in 5-10yrs.
Thoughts?
Cheers BB
DVP Price at posting:
$3.66 Sentiment: Buy Disclosure: Held
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