bumper december quarter, page-10

Whatsnext, I'd dearly love to see divs @ 6c but I'm working on the principle that the dividend policy will be based upon two tenets that supersede the desires of shareholders like you and me.

1. In good times the company will need cash to fund its pipeline of non-conforming loans and
2. In not so good times, like now, the cash will be diverted to buy backs which better suit the investment strategies of the two main shareholders who also run the business. Nothing wrong with this and it shows their confidence in the business.

For us though, we need to be mindful of how we get our pay day. If the divvys aren't mind blowing and there is a lack of buyers, how will the SP stay up in the absence of buy backs. Then, when the number of shares has been whittled away to say 80,000 how is value unlocked outside of a take over or Tim and co taking it private?

For now I am a happy camper and am expecting a good half yearly.