Last year I bought into the float of Sandon Investments (SNC). You can research this code and find out about them which will explain it better than I can. Sandon has been around for a while and I actually looked at buying into their unlisted funds management in the past (promoted through Bankwest). So to get to the point, what Sandon does as an activist investment fund is find undervalued companies that have potential but that they believe are struggling because of various other issues, such as management, or boards that aren't doing their job. Sandon has invested in CYG and the article in smh.com.au mentioned them. They buy enough in a company to hopefully be able to pressure a company to make changes. From the article I read they wanted board changes for CYG and also a one-time large dividend to be paid. CYG instead has opted for the smaller dividend payouts. The problem is that CYG is sitting on 50 million but only had a profit around $200K last year. I looked into buying into this but I'm hesitant just on the basis of the upcoming four dividends to be paid roughly over the next year. What happens after that? I'm watching it but undecided whether to invest in it or not.
CYG Price at posting:
$3.28 Sentiment: None Disclosure: Not Held
