growing ebitda earnings: the ceo's challenge, page-2

broadly agree with your CF forecasts, natnicnak, VEI is indeed a highly cash generative business. But instead of using internally generated CFs to fund acquisitions, what chances the Board pays a small dividend at the FY13 result coupled with a declaration that the div pay out ratio would be +80% in FY14 & going forward. If this was the case, VEI would be able to pay a FY14 div of +6cps = div yield of ~10% ff at current prices. If it did this, the share price would get to ~$1.20 pretty quickly as investors chased the yield, then VEI could issue stock at a PE of +15X to fund those private acquisitions at a PE of 3-4X and play the PE arbitrage game of all those other aggregators (eg GXL, GEM & dare I say it, ABC Learning ..... at least from the early years!!)