ORL - OrotonGroup Limited

[McLovin]

I think this to myself so often. Personally, I am in the firm belief that companies should be far more focused on optimising their capital structure and use of funds rather than focusing on sticking to one path (the dividend consistency path at any cost) in order to please a subset of investors who are in it for a return of capital. I guess it's heavily to do with the franking credit system we have in place..

It might also have something to do with making their cost of capital as low as possible. I do agree with the principle but I sometimes wonder if, as a shareholder, when one advocates these things they're not cutting off their nose to spite their face. I wonder if there's any research out there about the cost of equity for dividend v non-dividend paying companies that are otherwise in similar financial situations.

 

[skc]

It might also have something to do with making their cost of capital as low as possible. I do agree with the principle but I sometimes wonder if, as a shareholder, when one advocates these things they're not cutting off their nose to spite their face. I wonder if there's any research out there about the cost of equity for dividend v non-dividend paying companies that are otherwise in similar financial situations.

May be another reason is the incentive structure of the exectuives. Cancel the dividend you can guarantee the share price will flop big time. Your average market participant is short term and not that understanding. So if the incentive structure is around TSR or anything... propping the share price up (while not actually achieving anything) is a full time occupation.

P.S. Not saying that's what ORL is doing at all. Just in a general sense.

 

[VSntchr]

ORL has been in disarray since Sally left. Another downgrade today - price falling through $2.00. If it wasn't for all that director buying after the HY result, we probably would have been here sooner

Wonder how far the FY div will get cut??

 

[greggles]

Oroton Group announced to the ASX this morning that the company has been placed in voluntary administration. Shares are now suspended from trading.

"The Strategic Review process has failed to secure a viable option for the Company and an Administrator has been appointed," Oroton said.

Bad news for those holding. Things are looking grim.

 

[System]

On August 10th, 2018, OrotonGroup Limited (ORL) was removed from the ASX's official list in accordance with Listing Rule 17.11, following the transfer of all the issued capital of the Company to Manderrah Pty Ltd ACN 111 080 356 ATF the GJJ Family Trust.