CSE Global provided a 28 cents dividend and then watched its share price go ex dividend and plunges even further to 65 cents.
In all essence it looks tremendously oversold.
The return on invested capital on this software business looks good. The major reason not to bite is really that what does this new animal look like without that UK healthcare business.
That would have been the easy decision cause you can perhaps take out 30% of net profits.
The key question is that the CEO went with the healthcare group. So what does that live with CSE Global. The capital allocation picture changes.
A rather stable set of margins and a buying opportunity in 2011 due to the project meltdown. We all make mistakes, its whether we have the capacity to stand up well and learn from it again.
Strong ROIC and COIC figures, but the weakening nature of it may put a few off it.
It definitely can pay a 6% but the nature of their payout shows that may not be the case.
What is it that perhaps I am not seeing. Learn to know what you want to get, and the price you pay for it. Understand the black box that you want to buy.
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