Now have to work out if this is enough of a competitive advantage to gain and retain customers.
"Given the short term inpact on NPAT, the payout ratio will be increased compared to prior periods"
This bothers me a bit given that cash generation is expected to be negative in FY11 and working capital facility of $10m is in place. From a potential long term shareholder point of view I would prefer a reduction of payout ratio or even no dividend as opposed to taking on debt to pay dividends.
I know I am dreaming but hope the market is impatient it would be great to pick up CIL a bit closer to book value.
robusta are you still watching CIL? happy you didn't pay $1.70 back in September when you posted the above???: finding a stock you really want is a great thing especially if your belief in that stock is later proved correct, but entering said stock at at significant bottom is the real icing on the cake
Patience is an incredibly valuable and profitable discipline in long term share market investing and that's because great timing requires great patience.
Thankyou So_Cynical patience something I am learning the hard way. It is getting a little easier now I am almost fully invested, a company has to be a real bargain to tempt me to incur capital gains and loss of future growth from companies I would have to sell.
That is the other thing that bothers me about "Project Rocket", will this cause a advertising, marketing and margin "arms race" between CIL and opposition? I can't imagine them sitting back and letting CIL take market share.
I think it more of the market said this plan probably mean no more take over, stock really price in a bit for take over activities.
so take over parties wont pay the price the Con family want so no more wasting time and let get the ball rolling and carry on with expanding the business...
with the founder has 60% in the business you can be sure he will look after the business just like Uncle Turner of Flight Centre and Uncle Simon and Uncle Don at Credit Corp
Love to see a company go down the organic growth path rather than try to buy the opposition and I still think CIL are cheap but might wait and see for a bit longer.
