Australia's largest stock trading and investment forum Australia's #1 stock forum

EPW

Click for more information

0.21%

$2.43 erm power limited

2016 Guidance Affirmed, page-182

First 182 Last

Share
Profile

Follow
joewolf

4,503 Posts.

174

01/02/17

11:56

Post #: 22283393
Share

Originally posted by FSW ↑

Totally agreed on the LGC position - anybody would rather pay a penalty at $65 than pay the market at $90 - plainly simple.

Not looking to short - agree with you that the time has passed. Instead I am trying to ascertain whether or not the dividend can be sustained over more than one or two periods. Analysis shows they have the capacity to pay the dividend from cash reserves - they did after all raise capital for the failed Macquarie bid - but cash reserves are not going to being replenished from operating earnings while the operating margin is sub 2%. So the crux of it is - can they build a picture that shows a meaningful and sustainable improvement to the operating margin to see it back where it was five years ago at greater than 5% as that will drive a sustainable and growing dividend. If they can't drive up the operating margin they should just return the cash too shareholders...

Expand

They also free p around $60 million of cash held to cover supply with the sunset power deal over 3 years ... I don't think they will hold the dividend rather that they will try to give you around 10c with the franking ... So I am expecting 6 to 7c stable dividends.

EPW Price at posting: $1.18 Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper Highlights: Your most watched stocks for Week 47, 2024

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer’s drug could change the game

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

There are more pages in this discussion • 197 more messages in this thread...

First 182 Last

Add EPW (ASX) to my watchlist

SPONSORED BY