CM8 - What could be the positive catalyst?, page-37

Hi Von RIco, any company that returns cash to holders and then has to go back to market to raise funds (via issuing more shares) wants their heads read IMHO.

So yes they may do a buy back, as opposed to paying dividends, and cancel the shares, but then let's hope they don't need to issue more shares to raise funds in the medium term at least.

If they are likely to need cash in the medium term for any expansion plans then I don't think it would be prudent to pay either a dividend or undertake a buyback until such time as they have those funding needs covered.

But will agree, at a lower price a buy back may be a preferable option than a dividend as they can buy more back and cancel them. The level of franking credits available would be another factor, I assume with a lot of overseas income then there won't be much, if any, franking credits attached to a dividend.

Anyways, first things first, let's get the rest of that debt paid off.

All just IMHO.