value of amu , page-15

bacci ... the model doesn't work as most the companies are so intent on going for "growth" because they feel soooooo undervalued rather than returning the value to shareholders. The growth doesn't work but it never clicks for them.

What I am talking about is the shareholders getting something tangible in the hand - a cash dividend. Franking credits or not, the loss in value due to location ... all that are side issues. If a cash return is being made annually the shareholders get value from their investment. We are all smart enough (I hope) to know the implications of no franking credit and the market can price accordingly.

Further, if the company committed to returning cash it would make them think harder about where exactly they invested their remaining dimes.

MJS