price weakness, page-4

Yep, for a coy that doesn't need to make too many announcements, they really botched this one.

At around 16c per year, the impact at face value of the finalisation of the Investec loan funds should have been another 4c annual distribution - 20c pa justified a $2.00+ price, particularly with a good % tax deferred.

To then get hit by a tax paying regime without prior warning, coupled with a change in revenue model 12 months out which will slice 2c (if my quick calc are ok) at least of annual distributions was very bad news. And then to have to clarify that future distribution guidance of 16-18c was after grossing up for franking credits added fuel to the view that they have tried to be sneaky or too cute in the way they communicate.

They needed to just explain that beyond their control re tax position change by Govt, the annual distribution of 16c will be positively affected by Investec loan interest savings by x, but then we lose x cents pa for tax paid, gain franking credits and advise that in 2014 it appears a further hit to distributions of x is likely at this stage.

Then each shareholder can make their valuations of gross and net yield and transact with greater transperancy over the effect of likely future distributions will be for them given their own tax status and trading approach.