hey.. .anyone know what is happening to astro this afternoon?

internal restructuring?

maybe, suppose to be gud news but looks like not so... ??????

Because previously market believe the wrong time, aka RM1 dividend rumour, privatisation etc.

Also market always behave buy and rumour, sell on news, it has good run up previously as well, while the restructuring exercise is still under consideration stage, there is no concluded decision yet, which is totally not as same as rumour.

Source from HL eBroccking

There is a Jupiter market research about Astro today. It did mentioned about the possible one-off RM1 payment to shareholders, which would see Khazanah receiving some 340m from it.

The restructuring exercise news is wrong.
Sell off the oversea non profit company is correct.

could it be opposite? coz the exercise has been announced in bursa website... how do a company submit a fake report?

it could be the RM1 dividend news is misleading...

This post has been edited by ! Love Money: Jul 21 2009, 08:05 AM

The company is still under consideration phase, there is no concluded decision what to do.

Based on last year financial report.

Total current asset (cash + receivable) ~ 1.8 billion
Total current liabilities ~ 1.6 billion.

Total outstanding share 1.2 billion

For Rm1 payout, it needs net cash of 1.2 billion to pay, it is not viable unless some special restructuring, asset disposal, or major shareholders capital injection etc.

Hi, Astro was promising when it launched satelites M1, M2, M3, etc with many sets of possible ventures into several countries. That was 11 years ago. But subsequent licencing problem in Taiwan, India and Indonesia caused many of the batteries of transponders on its satelites ran out of useful life of 10 years without ever being used.

It pushed ahead I think and ran into serious red territory. The listing of Astro failed to lift any excitement. With it scaling back overseas operation, the possibility of surprised profit upside is limited. Msian market is too small for Astro and its market reach is approaching a limit soon.

Astro has been pushing on content revenue enhancement but it is actually competing with internet for viewers' time allocation, convenient payment system, share price information, etc. As internet is the preferred choice of entertainment for new generation, Astro's biz will become more mediocre.

In Asia, with biz line of this monoplistic sort, it is hard to get licence to operate or co-operate with local partners in overseas. I do not see good value at Rm3.60.

Astro's capital expenditure is high but its biz is hitting a plateau for years to come.