Ann: Opening Briefing Interview with Managing Dir, page-7

re: Ann: Opening Briefing Interview with Mana... Equipment rental companies always have high levels of gearing. It is the most efficient way to fund purchases of equipment rather than ask shareholders for more money.

The company is generating more than enough cash flow to pay debt and to give a return to shareholders. Also the company can cut back on maintenance and sell idle equipment to release further cash. At most 10% of capital can be bought back via an on market buyback. The company could call an off-market buy back to return capital to shareholders. I believe that any surplus capital should be used to buy back shares at these rock bottom prices. But the company may decide to declare dividend or a combination of both.

Coalition Government is priced in at 1.18 to win the next election

Early election called by Kevin Rudd is favoured on 24 August at 2.10

Once unions are crushed by the Coalition government new projects previously shelved will become economic again and BOL will be back to business as usual.

This boost in business confidence from an early election could be enough for directors to return capital to shareholders.