price floor, page-3

Fozza,

I think your 4 cps dividend estimate is way too optimistic.

Estimates for 2013 dividends (Pattersons I think?) were 2.0 cps prior to the earnings downgrade. I would guess that BOL would payout about 30% of NPAT so that capital purchases can be funded without increasing their debt/earnings ratio. Given your estimate of $20M NPAT and 470M shares, this would give around 1.3 cps.

Certainly, in future years there would be potential for their dividend to increase significantly.

I would be interested in your reasoning behind your 4 cps dividend estimate.