RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:whats not to love? Except maybe the share price !I agree its a great niche space... but because it is a merchant bank it has always paid a dividend as far as I know, so I assume this is a part of their plan and it wont be cancelled.
I believe there is a maximum amount per year that a company can buy back, usually 5% of shares, and their earnings far exceed this, and last year they bought well under the max. So they are already maxed out on that part. I want them to buy back shares but this also reduces the NAV but increases NAV per share. They could even do a dutch auction to buy back much more shares to cancel, but companies dont do this much as they want to grow.
An increase in dividend is basically immaterial at 1/900 of earnings, but could be important to those any institutions or persons who see dividends as stability and part of the criteria. I;m not actually one of them, I just want a smaller discount.
Unfortunately we are trading like a closed end fund now with a massive discount. Hopefully that can change and we can trade like a merchant bank! thanks