Originally Posted by
McGinty
Been running my own figures and I can't see where the "strong" growth is.
Sure 12% growth sounds nice on the prior three month period (Q1 2017) but as any of us more experienced investors do, we dig down a little further to identify the only earnings figure that matters to us shareholders.....Earnings per share (EPS). Now this rights issue will be the fourth dilutionary event this calendar year (with the SPP and two DRP's) all of which have given the company addition funding to grow on behalf of the shareholders.
I'll share my figures to illustrate:
1st Qrt 2017, NPAT $14.3m on 485.47m shares, = EPS of 2.95c
1st Qrt 2018, NPAT $16m on 522.65m shares, = EPS of 3.06c
Actual prior calendar period EPS growth rate of 3.7%
As you can see this is a way away from a "strong" growth rate.
Plus this being the second capital raising this year, shareholders should ask themselves if they are now actually funding the company's growth out of their own pockets?