NAOS Small Cap Opportunities Company Ltd (ASX: NSC) management have a plan to boost the share price over the next 12 months.
This is a listed investment company (LIC) which provides concentrated exposure to Australian listed small-cap companies with the market capitalisations generally between $100 million and $1 billion with an industrial focus.
What NAOS Small Cap Opportunities Announced
Naos announced an on-market buy-back of up to 10% of its shares. The Naos management decided to go ahead with a buy-back because the shares are trading at a discount to the net tangible assets (NTA) per share.
The investment manager believes that the high conviction portfolio of investments is currently undervalued and this buy-back will deliver value to shareholders including the shift to quarterly dividends, lowering management fees and other operating expenses.
This Naos LIC now has a trailing fully franked dividend yield of 8.7%, although time will tell if this is a sustainable dividend over the next few years due to the declining value of some of its share holdings. If the dividend can be maintained then it could be a very attractive dividend share.
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Disclosure: At the time of writing Jaz owns shares of NAOS Small Cap Opportunities Company Ltd, but that could change anytime.
