Penguin International

[karlmarx]

Penguin is still in growth mode.

Profits are plowed back into building more ships, and buying 8% of MPM. Given the drought in dividends over the past years, and the good profits this year, the pay-out ratio could have been much higher.

If shareholders are not amply rewarded with dividends during the good years -- and they are also not rewarded during the poor years -- then when can they expect to be rewarded?

If the reward to shareholders is capital appreciation, then shareholders should be mindful of the cyclical nature of the business.