RE: ALPH cash pile £270m with £6m generated every month12 Feb 2025 05:08
I’m not sure it’s as simple as you state. The additional cash generated from the interest income is still relatively new to Alpha. If a company with a good growth track record suddenly finds itself with additional cash, should it really rush to deploy it into new investments! No, it should still hold itself to high standards in regards to deploying it wisely. It takes time to formulate ideas and test them etc. alternatively should it rush to deploy it in buy backs and dividends? I don’t think so, Alpha has a very strong history of smart capital allocation and generating longterm growth. The management team need time and shouldn’t rush. In addition, let’s not forget they are also earning interest on the interest. Alpha are a long term focused business and of course some shareholders don’t always share the same mentality.