The sales of ships without recruit new ship is not a good news for the company. The reduction in fleet size won't be good for the company future, although it will register hefty profit from the sales of the ships, but if company doesn't use the cash to buy new fleet then future revenue will be lesser.

But this means that the company would issue a better dividend right

Yes, with more cash, it enable for the company to give generous dividend.

But those capital gain from the sale is one-off, won't be repeating every year. Bare in mind. You invest in a company for long term is aim for consistent, steady long term earning of the company which only enable company to give steady and consistently dividend over the long term.

DJ MARKET TALK: OSK Raises Maybulk To Buy, Ups Target To MYR5.10

22/05/2008 07:00:00 AM



0659 GMT [Dow Jones] STOCK CALL: OSK Research upgrades Malaysian Bulk Carriers (5077.KU), or Maybulk, to Buy from Trading Buy, ups target price to MYR5.10 from MYR4.98. Says share price volatility is lessening, while 38 sen net dividend, or 8.7% net yield, sustainable until 2010 at least. Raises FY08 profit forecast 12% after factoring in good selling price of ship Alam Makmur for $63.9 million, more ship in-charters, higher rates. "Rates will still be at very profitable levels at least till 1H10," says analyst Chris Eng, while notes cash pile continues to grow, will be used to buy ships the moment prices retreat to reasonable levels. Adds main catalysts include announcement of new ship purchases, sustaining of baltic dry index above 10,000-point level past Olympic Games. Stock down 3.2% at MYR4.24. (SJO)

---

Added on May 22, 2008, 3:19 pmResults Highlights by another broker

•
1QFY08 in line. Revenue of RM180.5m was 29% of our forecast and
market’s consensus while core net profit of RM92.3m was 23.5% of our
estimates and 20.5% of street’s . A commendable 1Q08 was driven by
buoyant bulk rates and increased chartered-in vessels .
•
QoQ, 1Q08 revenue and core net profit was lower by 5.5% and 24.4%
respectively on lower bulk rates. Average TCE/day for dry bulk in 1Q08
was 4.7% lower at US$39,661 as the Baltic Dry Index retreated from its
peak of 11,039 in Oct 07 to a low of 5,615 in Jan 08.
•
YoY, 1Q08 revenue soared 68.0% while core net profit increased
32.5% courtesy of strong bulk rates and higher numbers of chartered-
in vessels (1Q08: 8 vessels vs 1Q07: 1 vessel). Tanker contribution was
relatively flat as tanker rates were still suppressed by an oversupply
situation. A RM20.2m unrealised loss on investments as a result of lower
equity markets impacted by subprime crisis was also re gistered in 1Q08 .
•
Sale s of 3 vessels . Though no vessel details were given in the results
note, we believe the 3 vessels sold were Handysizes with average age of
24. Sales of these aging vessels were timely as vessel prices were at
record high levels. Current prices of 5 to 10 years old bulk carriers have
appreciated by more than 200% compared to 2006.

This post has been edited by SKY 1809: May 22 2008, 03:47 PM

steel rising worrr

KUB looks like being push up, any comment on this counter ?

KUB aka kaunter untung banyak

Sorry pana, I don't get waht you mean ? untung banyak ?

im gunning for masteel since all steel company has rised except masteel ^^

prices of steel should go up with high oil prices, good demands and disasters in Asia.

Not asking you to average down please.

This post has been edited by SKY 1809: May 22 2008, 04:48 PM

verbatim's Lsteel so lengg ^^

im worried ler. actually their strategy is good also, they sell the ships when in high prices like now.

but from the results of their financials and todays performance...doesnt look so gud

im still holding on my 5 biji. scared if making wrong decision.

Hello ppl,

Been a long time since i post in this topic.

Anyway, any news on YTLPOWER? They always announce divident around these time.

Hehehe... Didnt know will be tis leng leh.... Double Bonus today.. dumped my 20,000 shares at 87... made a decent profit..

Had LSTEEL until this morning due to T+3...sold at 0.8 and at the same day went up to 0.88....how sad can that be
bought at 0.9
made double loss today......damn damn damn...talking about luck

feel happy for u bro

its just matter of time bro... i was lucky in that sense.. sorry for u..

so did u get masteel? Around 4.15pm LSTEEL & KINSTEL already start make their move only left ONASTEL, MASTEEL & HIAPTEK....

Me also.... around 3.45pm feel hopeless with LSTEEL & KINSTEL, sold it to cut loss...
then right after I sold both counter keep going up
sold LSTEEL @ 0.805 & KINSTEL @ 1.52
Just not my luck today...

Just a nick name, punters in the market gave one.

There are a lot of funny nick name given by punters for fun on various counters.

Same here..sigh..i sold at 0.80 =.= T+3 also....yeap i got Masteel at 1.89 >.< bought 10000 shares and i gunning for HWGB....its having a down trend..and i can see a uptrend soon..20000 shares there ^^

Genting Bhd
26/06/2008

4.30 sen

RM 0.10

23/07/2008

Final Dividend

Less 26% Tax

Resorts World Bhd
26/06/2008

3.6 sen

RM 0.10

18/07/2008

Final Dividend

Less 26% Tax