Ya, a little bit 'surprise'.

of course...this is all time MUST BUY share lolz..

Oh, I was confused as there were posts of 13% increase before you.
I read back, and I realised the 13% was only for 2Q, and the 31% was for 1H

ahhhh i see i see, thanks for clearing the doubts of mine, too

hello, fellas!!!
as we know, PBBANK is going 2 give out dividend soon & the ex-date is on 1st Aug 08 rite?
Let's say i have a buying order "matched" on 31st July 08 but i have not pay the transaction amount yet 2 my broker as it can be done in between T+3 days....
so in this case, will i be entitled 2 the dividend?

Yes, ex-date don't care when you pay, ex-date care only when the time you purchase.

^Thanks Cherroy

Star article yesterday said analysts expecting SEA banks (including the biggest ones in singapore) to face weakening growth end of yr & turn sharply lower nxt yr.

Should this affect my interest in pbb ?

dripinrain,

Let's assume that PBBank has NO GROWTH, so what?? You buy at RM10. You collect RM0.80 every year. You get 8% return every year. Is that so bad?? It is double the 3.7% that you get from FD.

So, what if PBBank drop to RM5?? You still collect RM0.80 every year. In fact, you should buy more because now the yield is 16%. And, we are still talking about NO GROWTH. Any growth is gravy on top of that.

You make money when you buy.

For GOOD dividend paying stock, you do not need to sell in order to make money. In fact, in most cases, you do not even check the stock price for a few years except perhaps to buy more.

Dreamer

If PBBANK really drop to RM5, then there must be something wrong di and the dividend won't be at 0.80 anymore. Just look at Maybank, after they bought in a few banks, investor start throwing the share as they don't think can receive the same high dividend as previously.

Singh_Kalan,

Who say so?? If that is TRUE, why PBBank was at RM0.80 at 1997?? There are GUILTY by association. Sometimes, all BANKS are hit regardless how good they are. Look at what is happening now in USA.

Either a bank is well managed or not. IMHO, I do not consider Maybank as a well managed bank.

Dreamer

This post has been edited by dreamer101: Jul 30 2008, 10:56 AM

then may i know how much dividend they gave on that year?? Don't tell me its 0.80, if its true then its a 100% dividend payout di.

This post has been edited by Singh_Kalan: Jul 30 2008, 11:24 AM

Singh_Kalan,

I do not know. Perhaps someone else can help you. By the way, at 97, I bought Maybank and UEM before the crash. I learned my lessons.

Dreamer

i believe on that year the dividend payout may only be 5-15% of 0.80, any figure higher than that the stock price would be adjusted higher. The stock price of dividend stock depends pretty much on the dividend payout. If expected payout is below expectation, the share price will drop.

Back in 1997, PBBANK's dividend was 4.3 sen, that was still a 5.3% DY.
You cannot compare the dividend back then with now, because their EPS in 1997 was only 13.9 sen. Now, their EPS is 60-70 sen.
If we talk about PBBANK dropping to RM5 now, it would still not affect their business isn't it? So the dividend would still be the same.
UNLESS, PBBANK decided to lower their dividend payout, THEN we will see its price being punished.
Your first statement was too vague, as there might be other factors that would cause PBBANK's price to plunge to RM5 (not just something wrong with their fundamentals). Like what dreamer said, if ONE bank suddenly losses a lot, then people would start to panic and sell ALL other banks.
Does this mean PBBANK would make a loss as well? So it would be like US now.

As a conclusion, share price alone would not affect the dividend paid, but the dividend paid will affect the share price.
Movements in share price does not affect the company's fundamentals and business, but the fundamentals will affect the share price.

Just sharing my thought to "rephrase" your statements I rest my case now. Woohoo!

Actually back old day, (10+ years), Pbbank stock is not as good as now, it somehow a quite stagnant stock with a steady dividend yield. Nothing to shout about. The share price generally going nowhere most of the time, even at the high of 1993 super bull run, its stocks was around 3.xx only (before stock merged and bonus issues), something like every year gave 8% (Par value of Rm0.50) dividend. While TNB was near to Rm20, Telekom also 15.xx while UEM was 20! Proton 1x.xx.

This stock starting to shine when they are giving generous year in year out, after banks have abundant of cash which they find not much way to loan out or expansion locally. By then the stocks starting to creep up higher and higher.
Also, one of the reason why it performs so good this recent years is because BNM let the interest spread widen (BLR-FD interest, the basic of banks making money), which let the banks earn more and more to recoup their capital and profit since 1998 crisis. When 90's the spread was not as much as currently.
Also banks nowadays being allowed by BNM to impose a lot of non-interest income on customers, like charges on ATM cards, penalty charges, UT trust commission etc, which push up the banks profit even higher. Don't look down those small small money, it easily makes a banks earn hundreds of million without much risk.

Good and consistently payout based on improvement in real earning is the basic and solid support for any stock price. So in order for Pbbank to drop back to Rm5, 2 scenario I can think of :

1. Company profit goes down aka EPS, which make the company unable to have generous dividend again.

2. FD interest rate go up to 8%, which 8% yield of Pbbank is not attractive anymore.

Just my 2 cents.

This post has been edited by cherroy: Jul 30 2008, 12:28 PM

I m not saying share price affect the dividend payout. Actually its the other way round. Just that when the price drop drastically, there must be some concern / uncertainty. This uncertainty may be as a result of an expected lower profitability and thus lower dividend. Remember...share price is a reflection of future value... not current value

This post has been edited by Singh_Kalan: Jul 30 2008, 05:32 PM

I agree with that statement 100%. Now your phrase sounds better
So, that is IF the fundamentals are changing, then no doubt you'll see a revision of the dividend and price downwards.
But even in US right now, I believe innocent banks which are still reporting profits were also beaten down.
So, in a basket of apples, there are always bad apples and good apples
Unless of course, we see a reccession/depression, then that would affect the whole market.

So currently do you see any potential bank to be like public bank??

Actually there are not many choice that we can have after the big merger, I mean local bank.

If really want to have financial stocks, some overseas hardly beaten financial stocks might be a better choice than locally. Just my opinion though.