Yes, as long as one has the stock when ex-date, no matter when you buy it, then you are entitled for the dividend.

As predicted, those treasury share is given to offset no more special dividend this year or lesser dividend ahead.

Actually if Pbbank average purchased treasuries share is above 9.00, then shareholders receiving the share actually is at losing end of the buyback programme. As if those buyback money/cash being channelled as dividend in the first place rather than utlising for buyback then the dividend is much more than the value of treasuries shares shareholders are getting.

Except one issue, treasuries shares won't be taxed while dividend will (if company doesn't have tax credit anymore which prevent them to give tax exempted dividend). But those lower income shareholders won't be taxed even with dividend, so buyback move is more beneficiary on high end income shareholders.

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Added on January 20, 2009, 8:56 pmPreserving of cash on anticipation
1. higher NPL ahead
2. lesser loan growth ahead
3. lesser profit quarterly ahead is widely expected.
4. Margin might be shrinking as BLR is expected to slash down while BNM put a lower cap on FD rate, which BNM doesn't allow bank to offer less than 3% on 1 month and 3.5% for 12 months FD at least until now.
5. Difficulty in raising fund in financial market, so cash is valuable for any financial instituition on current environment.

This post has been edited by cherroy: Jan 20 2009, 08:59 PM

Although still view pbbank is well managed and able to withstand economy recession, all banks in the world are in considerable risk if economy situation doesn't improve or economy deteoriate further. Finance sector is most vulnerable in economy recession.

If Pbbank can't repeat its previous dividend, we might see some sell-down on this stock, as it is not cheap at current level. After the main support its share price currently is its dividend yield.

Having said that, local big cap name are well supported by local fund especially like EPF and PNB (because they have substantial interest in it so to protect their portfolio as well), as long as there is no significant selling from foreign funds and local UT (because of redeemption), then it still able to stand around 8.00. Unless local big boy give up the support or no longer able to support it.

Now, local stocks market is all about local big boy only. As lately we can see from substantial shareholders activities on various company, you often see EPF, PNB and other gov investment arms are buying right now.

Already stated less 25%, where got TE?

If it is declaring like: 25 cents single tier, then that's mean it is tax at company level already.

If a company wants to declare 25 cents less 25% income tax, then under single tier system it would become 18.75 cents single tier.

Banking sector is one of the most vulnerable industry in poor economy situation, because most bank's asset are loan and earning come from loan paid (differentiate between BLR and FD rate). So if those loan are not paid on time and more than 3 months, it will classified into NPL already.

Sell off or not, it depends on the outcome of it. Nobody knows the severity of the economy recession impact. May be better off or worst, it is up to anyone guess, predict.
Market price or stock price is price in a moderate difficult situation already, so anything better than expected, market might be rallying, but if worst then surely some sell off will occur.

This post has been edited by cherroy: Jan 21 2009, 10:22 AM

I should pin up query and answer about it, so that the number won't more than 250,000 times. Haha

Yes, both shares are the same, you get the same benefit, same dividend, same voting right.

The gap arise because there are more seller in -O1 as means more foreign shareholders want to dispose compared to local one. After all, price of a share is based on market supply and demand.

Because the share is issued in different way. May be need some changes in the share issuing procedure, then may be yes. Separate it out means those foreigners want to buy this stock, they definitely know when buying O1, they surely have voting right in it. As under BNM rules, foreigners can't have more than 30% voting right stake in commercial bank, so 30% shares are set aside for O1.

Yes, it is a little cheaper, but 0.20 is not a huge gap. Wait until you see 0.50~1.00 gap, then it is huge which happened on last time, which I can buy -O1 then dump the local, and getting some cash out of it. Haha.

Sorry to tell you, the TP doesn't make sense with its buy call.

It one is setting a TP of 8.90, now share price is 8.60~8.80, you don't put a buy call on it. The most higher is put a hold call only.

Don't mean it is not good or good instead it is one of several good stock that can withstand the recession impact, although profit might be dropping in line with overall market.
Just the rating doesn't make a lot of sense.

My opinion, I don't like TP set by a lot of research houses, often they changed their tone overnight when something wrong, by then it is rather meaningless of the TP set. While when TP being reached, they changed it higher and higher.

You invest in a company, you expect to grow with the company with no upside limit. You only sell when the company fundamental goes wrong. That's why you don't need a TP, but you need a price range (which research houses should put up, my opinion, instead of TP) that is cheap in order to get an idea based on fundamental, a this price range, the stock could potential yield good return.

This post has been edited by cherroy: Jan 25 2009, 06:57 AM

Pbbank -O1 is for those foreigners that bought it got voting right in it. Because they limit foreign shareholding (with voting right) up to 30%.

Foreigner still can buy Pbbank (local), but no voting right.

While Malaysian still can buy Pbbank-O1 which entitled all the same benefit with Pbbank (local).

So if both are the same and identical in term of benefit as shareholder, which one to buy? This answer I don't need to giv already.

Err.... cannot compare price to price, it is not a fair and doesn't show the actual situation.

Better use PER, Ebitda etc as ratio comparison, only then we can have a fair comparison.

Also Citigroup if not being bail out, it might no longer exist anymore, while those massive preferred shares issued to US gov, basically will dilute existing shareholders's stake, that's why those financial stock price plunging.

A) Highly unlikely it can maintain or grow the dividend, dividend highly will shrink a little. Recently they are not paying out special dividend anymore, in compensate they give treasury share which is not sustainable in the future.
Don't get me wrong, it still able to give handsome dividend yield compared to FD rate, just it could come down a bit as they need to preserve cash for NPL problem in the future, which definitely will go up in the near future with recession economy.

B) With FD rate is heading to all time low and across the globe, anything dividend yield that more than 2-3% is better off than FD already.

Whether this level is suit to buy or not, it is up to individual to judge, above don't mean it is good nor bad. Invest at your own risk.

Stock price vs book value of the company.

Normally, banks fair value which previous acquisition being made is around 1.5~2X so generally market view at those range the share price valuation is fair.
Pbbank is a bit high on this ratio because people pay for premium for its generous dividend yield which is attractive enought as comparison to FD rate as well as quality asset they owned (quality of loan).

So the key criteria of support Pbbank share is its dividend, so if market preceives its dividend will shrink, we can see some sell off in this stock.

This post has been edited by cherroy: Mar 15 2009, 04:25 PM

I had no crystal ball for that even most analysts and company management are facing difficulty to predict how near term future will be especially in current turmoil and with economy is shrink pretty fast with export around the world shrink at least 25% and above across Asian countries.

NPL surely will rise but should be the least among all the banks as quality of loan is significant better than the rest, loan growth will be minimal while banks are more reluctantly to lend freely.
Its EPS can easily drop 20% in next year financial year, so any sustainable dividend only can be paid through EPS, so 20-30% drop of dividend can be expected unless economy does recover dramatically, which unlikely.

This issue I raised it before in the UT fund topic as well.

No doubt, PM fund is supporting Pbbank share price. But Pbbank itself need to register a good management and financial result, otherwise the inter-related conflict or win win situation won't be materliased.

PM fund just response to UT holders's wish. If UT holders are redeeming their money, they have to sell as well, they can't buy. But if UT holders are putting money into the fund, then they have to buy.
It can be bias move by PM fund, but there is nothing wrong in it, as no matter how we criticise it, Pbbank is the one of top performers in KLSE, whether in its financial result, good management (the only one bank not registered a loss back 1997), as well as its generous dividend.
Regarding transparency or not, PM fund or Pb series fund is clearly listed out their 5 top holding mostly consist of Pbbank, which is well known already.

UT fund managers only can select which stock to buy which can't more than x% weight of the total fund, in between they are freely to switch which stock to buy, but they can't buy shares if UT holders are redeeming their unit.

If we think deeper and analyse across the KLSE stocks, actually not many stocks that we or specifically fund managers can select from as they need to go for high liquidity and high cap name which is not many in KLSE.

Other second third liners are more into "goreng' style stock only. No offence. So in whatever local UT fund, the list is similar here and there, and may be differ in weight and bias to one side only, which not many significant in between. Pbbank, Sime, TNB, MISC, Petgas, TM, Maybank, IOI, KLK, BAT, Genting etc are some name you generally will come across in equity fund (except for penny fund or small cap fund etc).

Pbbank is always one of foreign investors favourite.

With foreign funds are disposing, share price naturally will slide down.