HGO Position, page-48

Thanks VYR. I am sure you know a lot more than I do in these dealings. I was going on the recent announcement by BHP whereby they announced a 38c capital return and the remainder of the buyback as a FF Dividend. In their case this meant that shareholders would receive 38c plus say $28 as a FF dividend which would amount to $40 per share once the Franking credit was returned by the ATO. Based on $21400000 in FC which will be donated to some wacko cause if not utilised by shareholders, the company could facilitate the shareholder disposal of 278m shares as a 7.7c FF dividend. This would be added to the capital return of say 1c. The result would be the halving or better of shares on issue and roughly a doubling of the share price, just by utilising the FC's before they disappear. I admit this seems too good to be true, but why not throw it out there.

Below is an exert from the BHP share buyback:

For Australian tax purposes, the Buy-Back Price received by participatingshareholders will comprise the following: a) a capital component of A$0.38 per share; andb) a fully franked deemed dividend equal to the Buy-Back Price less A$0.38per share