Please explain, what do you mean?

As far as I know, Bursa has banned short selling in Malaysia stock market. Only in futures you can short, but not in the normal stock market.

a) is most likely. By using their spare cash to buy back their own shares to distribute back to their shareholders as dividends. For example, YTLPOWR recently distributed their treasury shares, 1 share for every 25 shares held which is about 4% dividend worth. Most companies do not buy more than 10% of it's outstanding shares on the market. This has a dilution effect on the market because when they bought it for treasury share, they are taking the share out of the market, therefore increasing it's value. By giving back to their shareholder, therefore diluting the value again.

b) Unlikely, because the reason why they buy back their share with their spare cash is because they don't have anything better to do with it at the moment. By selling back to the market, not only are they diluting back the share again, the amount they hold could prove difficult to get enough buyers to not cause the share price to crash. Liquidity issue.

c) it's possible but the option of canceling shares is to improve the counter's EPS or PER. By distributing the shares to their shareholders which is directly better rather than to indirectly make their share more valuable by raising EPS. But useful for companies that has a lot of ESOS which dilutes share prices. To compensate, some companies buy back their shares according to ESOS and cancel it so the shareholders don't get pissed off at the company.

Respect to PBBANK and LPI, although KLCI start the day with -29 points, shareholders still confident with both shares. Only the recent counters being goreng dropping like stone!

Bonus issue does not actually add any value to the share other than to make it more cheaper because of extra shares. Share prices will be adjusted lower according to the additional shares added to the market. So by right, the share should not increase or decrease based on this news.

Yeah you have to take into account the moment the accountings are done, anyone who has seen the profits from the lowly accounting clerk to the auditor will know at least 1 month before the actual announcement how much the company is making profit.

So normally you can see some counters who are about to announce high dividends or special dividends tend to have high volume because the some people are buying up based on the insider news.

I believe the 15 sens need to minus 27% tax but the 62.90 sens no need. So total maybe 73.85 sens per share.

If you have 100 shares, means it's RM0.7385 x 100 = RM73.85

Single tier 'Tax Exempt".

I'm not going to bother explaining the single tier system as I think it really is not well thought out yet. You can read about it more when you Google for it. Basically whenever you see this Single Tier Tax Exempt, means you get a tax free dividend (without having to pay 27% in advance).

Wah look at BKAWAN. Nice discount at the moment.

UCHITEC seems to have a consistent dividend payout with consistent special dividends as well. I have not read their Annual report though so I don't really know how sustainable their business is, but their 5 year performance looks good so far.

Regarding O&G counters, SHELL is one of the best dividend paying counters I know of. Not too sure with the others who are more involve with servicing the O&G industry like Dialog etc.

No use for option B because by the time the dividend is announced, most likely the price already pushed up. For short time, sell it when dividends announced not after ex-date. This way you get the dividends from the price appreciation without the tax.

This post has been edited by skiddtrader: May 18 2008, 03:19 PM

Well I wouldn't say not enough, but the costs of buying the stock with such a small amount may make the dividend payouts looks small and comparable to the amount of charges you pay for the initial transaction. But if you can forget that initial fee, then keep it for a long time. The % amount you earn from your RM1k in a high dividend yield counter is definitely better than fixed Deposit. But the risks of capital depreciation (share drops) is there.

AMWAY is a good dividend counter. Lots of cash and very stable consumer counter. They have a loyal customer base as well.

To answer your question. No, you do not need to hold for 1 year to qualify for dividends. You can buy 1 day before the dividend allocation or ex-date and you will still receive it.

But bear in mind that a dividend announcement will precede it's ex-date which means the stock will already move up higher and take into account the dividend payout. So if you buy after the announcement, it will be at an inflated price.

We can't predict accurately what dividend they will give. If the share prices drop to a low of RM5.00 in the middle of the year, definitely you won't be getting RM1.00 dividends as normally they try to relate it to the price.

But from past dividends we can predict the % compared to the share price at the time of announcement.

So if the % dividend for PB is for example consistently 8-10%, and the share price stay steady at about RM9.70. You can expect around 0.80 - 0.97 sens dividends a share. If they continue to make money of course.

All these are just examples, please do your own homework about the dividends yields of stocks and counters you are interested in.

Yeah, I'm just giving an example.

50 treasury shares is a lot eh. 50 for how many shares held?

Hmmm if not mistaken, at one time WB's company Berkshire had almost USD40 bil of cash which was not in use. His shareholders and analyst complained about it because they say it is not generating income. I believe his answer to them was something in the line of there wasn't anything good which was worth buying at current prices. And that he rather not buy anything than buying something he might regret later on.

You can learn a lot from investopedia.com which is a great site for reference as well as education for anything related to finance/stocks/funds etc.

You can sell it on 17th March itself and still get the dividend.

Anytime on the 17th, as the price will be adjusted already.