I like Maybulk Personally because if you were to compare with BJTOTO, BJTOTO's Net Tangible Asset is Virtually negative....which means they dont have any capital inside.....the business is operating on borrowed money.....and they borrow ALOT!!!.....But no doubt, BJTOTO's share price is stable as alot of people are intereested in its Dividend (only). But of course, the earnings are quite good as well, considering they dont need any capital to general profit, all BORROWED Money.

As for Maybulk, I like due to little debts, and high profit margin. Good Dividend too. If you are looking for long term and good company with strong balance sheet and little debts, you should go for Maybulk.....try to consider CSCENIC too, though its a small company but it has one of the best balance sheet i have ever seen. Pays good dividend too....remember, the key here is long term.

When i say long term, it normally means 5 years or more.....

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 amThis 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 amSeconded 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).

This post has been edited by maxchua: Aug 25 2009, 01:09 AM

$4.50

Its been long since i graduated, but i remembered some theory i studied in economic class, saying that a company is best 100% leveraged, thus you dont have to invest anything to get returns. because of the ROE thingy...if i remember correctly.

As for Digi, i think its still in its expansion phase, thus needing a certain amount of cash to do so. But from their actions, you can see that they know what their existing investors want which is High dividend, without this high payout, they are afraid that their shares might tank. Thus they are thinking of ways to increase or maintain their share price by giving out more dividends due to competition (maxis).

If you were to ask if they are doing the right thing to increase leverage in times like this and if its a wise choice to borrow money to pay shareholders, ..... i dont know, only time will tell. I like digi as a whole, but the current share price is too high for me to swallow. Shareholders should be quite happy to hear that they are getting more dividend regardless of where the funds are coming from ....hahahaha....as long as not from the shareholder's pockets (rights issue).