just give u a layman's term of what capital repayment is...

Normally this companies are cash rich, because most of their assets have already been paid in full and they have very little or no liabilities.

So what do you do when u have too much money?
1. A company can declare a dividend
2. or a Capital Repayment

Why companies choose capital repayment over dividend because most likely the sum itself is significantly larger and the company will have to dig into the shareholders fund to return this excess capital money. Which requires S/H approva and also the courts approval for such action to be carried out.

Since the company is neither expanding or in need of capital, money sitting in the bank wont do the company any good (i.e. whether for tax purposes, s/h will make noice becoz the co is hoardin all the cash etc...).

What companies that r likely to undertake Cap Repayment?
Bjtoto for instance, Genting, Jinter, BAT, Magnum etc...

Notice that all this companies generate a significant amt of cash.

I see. I think I kinda understand now. Just that.. Take Jinter for example,
Lets say they repay 75cent of its 1ringgit value, and their stock it currently at rm4.30. then after the repayment.. how much the stock price will become? izzit rm4.30 - 75%??

I will smack u silly, did i say Panamy  ... I asked for Jinter, look at my replies & quote ---.

---

Added on November 10, 2008, 10:56 pm

I will smack u silly too if ur refering to Panamy... 

****

Screen shot is taken from HLE broking btw.,

"The Proposed Capital Repayment involves a capital repayment via cash on the basis of RM 0.75 for every one (1) JTI Share to the Entitled Shareholders (as defined below), via a reduction of the share capital of JTI pursuant to Section 64 of the Act. Upon completion of the Proposed Capital Repayment, the par value of the ordinary shares in the Company will be reduced from RM1.00 to RM 0.25 each and the Memorandum and Articles of Association of the Company will be amended accordingly."

above extracted from Jinter announcement.

can anyone explain it. I want to know if i have jinter stock at rm4.30.. how much will i receive and what price will my stock become.. and what does rm0.25 par mean?

Stocktube blog about Carlsberg (dividend stock):

you'd be surprised when figures/digits talk:

If somehow you inherited 1,000 Carlsberg shares in 1971 and you had keep it under your pillow all these years till now, your initial 1,000 shares would have ballooned to 33,750 shares assuming you’ve subscribed to the rights issue in 1973. Long story short, the initial investment of RM1,500 would grow to RM118,125 based on today’s closing price of RM3.50 a share excluding the RM179,569 in cumulative gross dividend received since 1971 to 2007. Technically you are a millionaire if you have 4,000 shares back in 1971.

Source: http://stocktube.blogspot.com/2008/12/divi...-carlsberg.html

Actually it is identical across on good fundamental stocks.

That's why I repeated advice people to invest on good fundamental stocks, as over the long term, it is those stocks are making one wealthy and gain significantly without one actually notice.

Once you had gain through this kind of stocks, you don't bother about goreng stocks anymore. As goreng stocks make one tension and worry about the market all the time, eye needs to constantly monitor how the stock moves, while those good stocks you can buy and forget about it and sleep well every night.

For me, goreng is more about looking for fun only.

yalor, when we talk about "long term", it means 20 to 30 years time (based on the Carlsberg & YTL articles).

wow, 30 years later, i'd be 50 years+ jor.
i wonder would my shares make me become a millionaire by then

Yup 100%. Once i retire i will trade for fun everyday  I do agree trading is quite fun 

I think trading is fun when you have the :

1. time

2. extra cash

add on,

3. during bull market

cincai tembak oso can make money

I browsed through this whole thread from page 1     as I'm interested to get some more long-term high dividend stocks....

Here's a rough list of what our forumers have recommended. What do you guys think? Any new changes?

Maybulk
BJTOTO
AXIS
ATRIUM REIT
Genting (probably not in the near future?)
PBBANK
SIME (probably not?)
AMWAY
BAT
Guiness (but stock prices decreasing gradually from 2007!)
Calsberg (but stock prices ALSO decreasing gradually from 2007!)
Jtinter
Apollo (stock prices never drop, even recently)
Panamy
Star
Digi
Uchi Tech
LPI
Yilai
YTLPOWER
Maybank (probably not?)

Gonna do some research on their stock prices later..... 

genting from last time till now is never a dividend stock

How about HAIO and AMWAY?

KLK in plantation sector?

Noted.  (edited above)
AMWAY got leh 

HAIO? Didn't see anybody mentioning it.... is it really a good dividend counter?

I did read somebody giving a passing remark regarding KLK/BKAWAN but not too sure....