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Lupus - don't be fooled by the dividend     

Energeticbacker - 02 Oct 2008 18:25

Investor's Champion (www.investorschampion.com) has issued a forthright commentary!

This one looks in bad shape to me.

The final dividend looks far from assured so dont be fooled by the reported c10% annual yield!
Oil services is actually only 5% of top line yet new broker has place them in Oil Service Sector
Chairmans remuneration was ludicrously highly relative to the size of business and performance to date.
Recent options package unbelievably generous
Laird SS acquisition at too high a multiple and poorly timed
Given impairment likelihood over coming years earnings estimates impossible
Share buybacks awfully timed and resulted in loss of shareholder value and worsening cash position
Interest cover only 1.7x!!
Earnings based valuation metric irrelevant!

etc

But the really big issue is the level of debt

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