RE: POLY Split2 Dec 2022 07:59
Morning! The figure of 300 for Poly-K is way too low, Poly-K paid for all of the dividend last year out of it's FCF, which was way over $1, and once the split happens, ii's will be able to buy back in, so inflating the SP. Even if Poly-K issues say a smaller 50-60p divedend ongoing, with a POX plant in the pipeline, can you imagine the SP being 300 for a 50-60p divedend and future increased profitability? Berenburg has to be cautious, it's factoring in there is still risk and uncertainty in Russian assets, not that Poly-R is worthless, they can't value it because they can't be sure what's going to happen. For sure Poly-R is a longer term deal, several things have to happen, war 'ending', easing of some key financial sanctions (Poly moving to a 'friendly country' will help with that), political tensions lessening, Rouble weakening again, but so long as no disaster strikes, there can be a lot of upside in the Ru SP I believe. I'm in this for the divedend anyway, and multi bag on the SP will be a cherry on the cake. All IMO DYOR Shut That Door etc