VRL 0.00% $3.00 village roadshow limited

VRLPA Village, page-3

  1. 175 Posts.

    I agree with most of what you are saying - although I don't think the prefs convert to normal shares if no div is payable - here is what it says on page 94 of the annual report:

    A preference share shall confer no right to vote at any general meeting except in one or more of the following circumstances:
    a)on a proposal that affects rights attaching to the preference share;
    b)during a period which any dividend payable on the preference share is more than 6 months in arrears;
    c)on a proposal to reduce the share capital of the Company;
    d)on a proposal to wind up the Company;
    e)on a proposal for the sale of the Company ’s undertaking.

    Correct me if I am wrong but I think 'a period which any div payable on the pref shares is more than 6 months in arrears' only occurs if the directors declare a div and then don't pay it. I think they can happily not declare and div and then not pay one (as long as there is no div on the normal shares). That is why they are called non-cumulative (the 10c div does not accumulate if a year goes by where a div is not declared) Am I wrong?

    Anyway, I fully agree that VRLPA are an absolute bargain at the moment and I personally have way too many of them. Bought them at an average price of 92c a few months ago and got the 15c div (including franking) so I'm down 7c at the moment buy have complete faith in them. Looking forward to retirement!!


    P.S. I normally fill in the thing at the bottom with 'Buy' and 'Buy'. I am convinced that some people are just complete morons and sell shares without really understanding what they are worth which has obviously been happening with the VRLPAs (now less than half the VRL price and trading on a PE of about 5!!) so I have put 'No View' for short term - but long term riches here we come!!
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