I have just caught up with the news on this one, better late than never..... This is extremely disappointing to the average retail investor. CGH raised $70M through listing and now offering $5.5M to buy back the same shares after using the initial listing to expand through acquisitions. EBIT has fallen (as has all resource sector stocks...) but revenue is strong and the company has been conservative with cash by dropping the dividend... Financially they are in a good position.
Let me get this straight, "the market capitalisation of calibre doesn't reflect the underlying asset value of the business" - boo hoo poor us.... But the directors are happy to pay out 12cents a share to those who supported them at $1.60 a share, who are the real looser here!!!
Fundamentally I understand why they want to delist, but the low liquidity is because of the high director holding of the stock in the first place, there aren't enough retail investors..... I can only see this as a money for jam situation for the directors... Take $70M from various investors, cry poor, payout $5.5M and go back on their merry ways as a profitable business post a couple of acquisistions funded by an original prospectus and asx listing... This is poor form. BTW the share buyback instead of dividend.... another way of decreasing the liquidity of the stock..........
CGH Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
