Ann: Opening Briefing Interview with Managing Dir, page-3

re: Ann: Opening Briefing Interview with Mana... They have $354 million of equipment on the books. If they can sell 10% of this at book value they can pay a 7-8 cent dividend from this cash alone.

Further while EBIT is forecast to be $30 million
Depreciation is $30 million per year so EBITDA is $60 million per year

If they don't spend money on maintenance capex or new equipment. And say interest and tax is some $20 million then that is $40 million of cash available before selling any equipment.

BOL could free up cash to pay a dividend in excess of the current share price from not replacing equipment and by selling idle equipment. Of course this is subject to debt covenants buy $70 million could be freed up and half returned to shareholders.

Based on the latest announcement, the board appears to be interested in returning cash to shareholders.

This could also be done by a share buyback to give the share price a boost which would be a very good use of capital at current share prices. Selling idle equipment and buying your own stock at 10% of book value would be perhaps the best use of capital.

With the current market cap at $33 million, the directors could easily drive the share price back up with an on market buy back given the amount of cash that can easily be freed up from the business. Even if they only used $10 million of their spare cash they could drive the share price to 20 cents easily.

The stock is a screaming buy.