Mid term update
3
We initially covered CWC in our April edition within which we pointed out the extensive and sustained buying of the shares that had been carried out by CEO Tony Rice during the last 2 years all the way down from 60p to the early 30p’s. At last count he held over 30m shares with a rough average of around 40p. This magnitude of director’s vested interest should not be underestimated — your pain is his pain and vice versa. The final results on the 6 June in which the Company cut the dividend in half to 4c was actually received well by the market as it rebased the Group’s cash flow rofile to a more sustainable one going forward.
Cable & Wireless chart
36 | www.financial-spread-betting.com | July 2012
At the current price the shares yield almost 9% with the dividend now being covered over 1.5 times. We moved to a Conviction Buy on this date and below is the 1 year chart showing our entry level (30p). Please note that the registration date (the shares have gone XD) has now been passed for the final dividend and which equated to 3.5p (5.33c). This means that if you had purchased the stock, this would also have been credited to your CFD or spreadbet account.