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Online Share Trading

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Safrican
Occasional Contributor
Newbie question so forgive my ignorance, but is this a buy with a share price of 220 and a dividend of 199 net ?? There seems to be great enthusiasm to buy over the last 2 days... All comments appreciated.
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11 REPLIES 11
Not applicable
why would you want to pay 220 for a stock that is paying out 90% of its NAV in dividends amounting to 211c per share? What is left in the company to justify the premium you want to pay?
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GMouton
New Contributor
I'm new too but consider it a super dividend....
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GMouton
New Contributor
Make 100% sense.
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SimonPB
Valued Contributor
they just unbundling assets, not sure there is any actually value here
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gamma
Contributor
Agreed. After the special divi has been paid,the bits and pieces left in the structure aren't worth much. THe directors have also said they cannot estiamte when the final liabilities etc will be offloaded, so it is fairly uncertain as to what may come from this. The money has already been made in this restructure. The guys at Tantalum Capital do a decent job at profiting from these scenarios (if I remember correctly, they were a major shareholder in the Dialogue Group and made some good money from corporate action)
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klapka
Super Contributor
Yes, little point now putting your money into this and getting some back after tax. Then you could wait a long time to get the balance and an unknown premium. As a cash shell they will be delisted and then it is interesting how quiet companies become once they are off the exchange.
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Bangbielie
Contributor
Yip, and when the tax man has taken his cut, it comes down to 180. I can think of many nicer ways to lose cash.
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THRESHOLD
Super Contributor
After dumping the "shell" and accept the dividend - you will acquirea tax benefit of marginal rate - tax on dividend (should be less than normal due to various STC regime reserves carried forward.) SO - roughly 30% tax "benefit" to carry forward. A fantastic deal.
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THRESHOLD
Super Contributor
Should read "accepting the dividend..."
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Safrican
Occasional Contributor
Thanks Gents, first time I have come across this type of Div. to remaining NAV ratio in 6 years here, your comments have been very helpfull.
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ngamla
Not applicable
ya it will be a good buy in the last two days, but what gona happen after the LTD,
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