Originally Posted by
percy
That is 11,500 share HOLDERS who hold under 1,000 shares each.
By reducing that large number of small shareholders they expect to save about $50,000 of share registry fees .
This is positive,and will not cost much.[Under $1 mil]
As for a proper share buy back,that seems to be a long way off,as the Coop board wants a very large safety net.They had $22mil plus this latest hold back of $5mil.Rebate shares being redeemed would cost under $13 mil so that rainy dday holding is mounting up.
A comment was made at the agm that most Coops got into trouble as they paid out too much to members.
I think this is a situation that although we may disagree with,we will have to accept their conservatism.
The way SFF Ltd ceo Simon Limmer spoke about how they were trading, and the fact they were increasing their capital expenditure yet again,makes me think we are in for another strong year.
In answer to a question about the rainy day fund being used to take advantage of an opportunity,the chairman said there was no opportunity under consideration.{sounded as though there never has been one].
Therefore if we have another strong year,I think the rainy day fund will come up again at next year's agm,and the board may find it difficult to explain why they are holding on to so much.
The attraction of SFF was their strong balance sheet,so retention of the rainy day fund just makes it stronger.