Straco Corp announces their Q2 2012 profits. You can view the results [here].
It would seem that since IPO in early 2003 they have been profitable every year. The great thing about Straco is that they do not need much maintenance capital expenditure. And if they need, they are funded by interest income from their huge cash holdings.
Recently, they started buying back shares. This is also a form of rewarding shareholders, but if they are trading higher then net asset value I wonder if it is really a good way of rewarding us.
They are earning roughly 13% ROE. If we take out the cash, the ROE is likely to be much higher. Yet they are also not increasing their dividend payout.
Cash sitting on the balance sheet is an opportunity fund to be deployed, but it would seem the management takes their time. No idea what they intend to do with it. Perhaps purchasing 2 more theme tourist attraction within their core competency is a good idea.
This business looks to be humming along just nicely.
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