harcourt, page-3

Franking from 2 sources

1 is it pays tax- well, last year all investment vehicles made a negative return, so I guess it didn't pay tax on realised gains

The other thing is it gets franking from Dividends it receives

Here's the question- do we prefer that Microcap companies pay dividends and frank them to their shareholders, or reinvest in their own company?

Yep- when I play my micro's, I am not investing in them for the dividend play

On this basis, it pays a dividend, but didn't frank them

IF they get another 20% return, then they'l lpay tax, then they'll frank that dividend

The other thing is, its all a furfy anyway

Imagine the NTA is $1.00
It has a 10% year
NTA goes to $1.10
It pays its 30% company tax, so is now $1.07

So it pays 7c ff

OR, if it didn't pay tax on the 10% growth, it pays a 10c unfranked dividend

Either way, the share price and NTA go to $1

Franking is too much hype.

UNLESS you are under the company tax rate, then it it worth an extra cent

But the truth is, the tax is paid by you or the company. You are all the same at the end of the day

And its all of 1% difference the added value, I'd rather the company give me a 30% return than get my knickers in a huff over the added value to me of franking because I am in pension phase


I am interested because I see volume on the buy side has returned to this company on the screens again

It could be augering well for a recovery of confidence in the markets

Hope so