58% dividend yield(gross)+14.5%capital return , page-9

Thanks Lionel, a thought provoking post from you as usual.

I was guessing that EXS would have had a run up to the early 80's prior to going ex-div, particularly after the dividend is declared. If we don't have some sort of an increase then I cant see any value in selling at these levels
-I might as well hang on for the ride and look at reinvesting the dividend.

EXS looks very promising ex-dividend with ongoing income, excellent cash position to fund exploration and a number of projects with announcements due -around 25c must offer very attractive value. Having said that, the world markets are crazy ATM so it is hard to predict if there will be a roller-coaster ride.

Pleased to see not a huge wall of sellers waiting in pre-trade today with only 100,000 up to 71.5c so perhaps yesterdays sell-off has largely priced in last nights world market falls including copper to the lowest level for a month.

I notice reading the Deloitte's guide to franking credits/holding periods that someone kindly linked previously that the 45 days does not include the buy and sell days.

My sense is that today's trading will determine the nadir for EXS in the lead-up to the dividend action.

All the best,


John S.


http://www.asx.net.au/documents/products/taxation_holding_period_and_related_payment_rules_aug_2010.pdf