That is a good question actually, alot of people would ask, isnt it better for me to have cash in my hand rather than cash in a company. Well, if you are asking this question, then you understand the purpose of ROE (return on Equity). Lets take CSCENIC for example, which has an ROE of about 20%. This means that for every dollar invested in this company (regardless of whether the company is keeping alot of cash or having alot of loans, it doesnt matter), the company is helping me earn 20% on my invested capital!!!....does that answer your question?

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Added on August 25, 2009, 1:01 am
This is the reason why i think CSCENIC is such a good Investment long term:
I am a very conservative investor, thus i always use a 5 years average to determine if the stock is good or bad for investment.

5 Years' Return on Equity (ROE)18%: This means that you will earn back all your capital within 5 years. (if you were to buy at their book value which is at $0.73, Current price is only $0.44, that is about 40% discount to their book value!) Which means that if you were to buy at current price, assuming that everything stays constant, it takes about 3 years to earn all your capital invested. (remember that this is a recession period, and they can still sustain this kind of earning, if you believe in recovery, things will look much more rosy.)

5 Years Avg. Dividend yield: 6%
If you were to invest now, at $0.44, your dividend would be about $0.03 (that sums up to about 6%), But if you were to hold (after all the research, i believe the fair value for this stock is about $0.90-$1.00), for about one-two years, 6% of $1.00 is about $0.06 which is your dividend. that would account to a 14% dividend yield if you were to buy the stock at this price now. Key to investment is long term.

The net profit margin after tax of the company is about 16% which suggest that this is a very profitable company. Even if there is a recession, probability of this company making profit is still very high because of the high margin (as compared to other blue chip stocks' whose net profit margin after tax is on the average about 5%).

Current Ratio of 14 which suggest liquidity of the firm. For every one dollar of Debt, they have $14 in reserve to pay their debts which suggest good liquidity. The cash flow of the company is not a problem. Debt to Equity ratio is only 0.08 which suggest very very low debts relative to its equity value. Warren Buffett once said, he loves to invest in companies with little or no debts because these company will 'never' (i forgot the exact word) go into bankruptcy.

Thus, i strongly stand by what i said. Its a good buy, good company, with lots of cash and no debts and pay good dividend.

Please feel free to drop by any comments regarding this stock, thank you.

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Added on August 25, 2009, 1:09 am

Seconded the comment, i agree totally, just want to add that due to the increase expected inflation in the world (after the fed pumping in so much), commodities are bound to rise....and rise alot (according to most of the analysts around the world), thus if you believe in rising commodities prices...which is very much correlated to DBI, then its very much advisable to invest in Maybulk. Personally i prefer Maybulk to BJTOTO (please note that i am not saying that BJTOTO is worthless or anything, ...simply put, i prefer Maybulk's business model more).

Just throwing out a question here, how do you guys track your dividend payments? Manually? If you have a lot of different counters that pay dividends, and some of them (the REITs) might pay them quarterly, that's a lot of dividend payments to keep track of!

I use the CIMB's iTrade platform to buy the shares myself and while it lets me look at the dividend history of the stocks I currently own, it doesn't actual track which dividend payments I've qualified for.

I'm just curious about how the rest of you keep your financial records in order with a minimum of hassle.

Just throwing out a question here, how do you guys track your dividend payments? Manually? If you have a lot of different counters that pay dividends, and some of them (the REITs) might pay them quarterly, that's a lot of dividend payments to keep track of!

I use the CIMB's iTrade platform to buy the shares myself and while it lets me look at the dividend history of the stocks I currently own, it doesn't actual track which dividend payments I've qualified for.

I'm just curious about how the rest of you keep your financial records in order with a minimum of hassle.

KLSETracker, on the dividend tab

And to Jordy, why wouldn't you track your dividends? At the very least, surely you have to check that you're being correctly paid for the dividends that you're qualified for, right?

Hmm, looks good but costs money though.

And to Jordy, why wouldn't you track your dividends? At the very least, surely you have to check that you're being correctly paid for the dividends that you're qualified for, right?

For your reading pleasure ....... BAT is like a golden goose...if you can hold it for 10 years....
of course we 'projected' tobacco industrial biz is stabilize along the 10 years........................................

one thing for sure this coming October of 2009, market expects an increase of sin tax for tobacco, gambling, liquors, beers industries....
as we will see how these sin tax will result a hike in selling price of above items, at the end it is the consumers that need to fork out the money ........

Market always worry about sin tax increment will hurt those 'sin' business company, which always ended up make them make even more profit, as those tax increment always got temporarily effect only, afterwards any cost will pass to consumers which people still willing to fork out more money to buy.

The major worry is always rampant smuggling that take a share of the business away from the company.

Market always worry about sin tax increment will hurt those 'sin' business company, which always ended up make them make even more profit, as those tax increment always got temporarily effect only, afterwards any cost will pass to consumers which people still willing to fork out more money to buy.

The major worry is always rampant smuggling that take a share of the business away from the company.

Is the sin tax increment (a) or (b)
a. last year tax RM0.50 1 box. This year increase to RM0.53 1 box.
b. last year tax at 15%, this year increase to tax at 16%

If the increment is like (a), then I understand why people keep buying. Because the increase tax is just merely a reflection of inflation.
But if the increment is like (b), and every year add %, then surely one day will reach 50%, 70%, 100%.

MSNIAGA, based on today's price, one would be enjoying a 8.5% DY (after tax). only down side is, low liquidity. it only become active prior to the release of quaterly report on Q101.

Dear all senior, may I know which high dividend counter that is reliable (sound management + decent dividend against inflation)?  I plan to get some for long long term (>20 years) and save them for my offspring, Thank you for your advice