Management confirmed 5.95c distribution. Importantly, cash reserves have been set aside for this distribution. There is no need to underwrite it which is why RCY has the issue.
I actually think this is quite an attarctive short term opportunity. will go 'ex' div in January and second instalment due for those that are holding in mid April 09.
I would think this share price will move up to at least the 15c (possibly 20c) level by end of year as investors begin to set themselves for a tax deferred distribution. On current prices, the stock will need to fall to approx 3c post distribution to lose out. Good punt I reckon.
BCS Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
