That's why I am surprise and puzzle, people go to chase TMI after TM share rise this morning which doesn't make sense at all. It is a bad news for TMI actually.

The newer BNM's OPR rate of 2% only start and effective 1 March, so you only see bank slash BLR after 1 March. But they are quick to lower down the FD rate today!

If it did happen, it is disastrous for both stocks.
But since they have proposed the capital repayment, means they are already planning ahead for it already. You won't annouce something you are not sure of, right? So I don't think it will happen.

This is what we call interest effect.

To chase out the money sitting idle in the FD, (spend, invest or whatever as long as the money is being used for) while making loan cheaper to get, both way spur economy activities.

But it has some effect up to certain extent, once too low, it become no effect at ll. Just like if FD rate is 1.5% vs 1%, then effect is almost none already. As it is insignficant.

Not true. Price will be adjusted according.

Yes, simple rely on local fund is not enough to boost the market.
Stock market cannot be boost artificially without economy growth. The main criteria for stock market to go up is economy growth and improved company earning, without it, no matter how much you pour money into the stock market, it won't go up, the best (with lot of money) is creating some unsustainable bubble, just like second board super bull, Mesdaq run back years ago.

That's why only minimum % are actually gain from stock market. I once came across some articles and statistic that only about 3/10 investors in stock market (KLSE) are actuallly gaining in the market. Others mostly feeding investment houses and brokers's pocket and losing.

Soley rely on punter and speculate style with hit and run won't carry one too far. Might gain little here and there 5 cents here, 10 cents there, 20 cents there. But other person invest in good fundamental stocks with long term, just need one hit that already gain 2.00 3.00 or 4.00.
Also, with hit and run style, the more you make transaction, the more mistake potential to be made. So you might as well lose 50 cents just intend to make 20 cents with hit and run. The other person that make long term investment, he only need to make sure one decision being correct, then the fruit is much much bigger.

Not to say hit and run not good or whatsoever, some might be good in it and some might prefer it, nothing right or wrong.
Just my 2 cents, and sharing some experience of it.

3 years is the average figure.

Wow, that's good news.

Need to see its details of earning especially cashflow. If good, me also want to join the cruise.

Maybulk

EPS is pretty ugly.

Cash level is healthy with 790 million which is substantial enough to weather through the bad time.

Future generous dividend is not sustainable as it just draining out cash if EPS continue to be as bad and operational profit remain at distress level.
After all, the significant cash generated is from vessel disposal, not from operation activities.

So the dividend is given from the past year accumulated profit plus vessel disposal.

Conclusion, if not the 30 cents dividend, with this kind of result, share price would plunge, so company management decided to give generious dividend as sweeties. My opinoin only.

You look at current quarter one, not the past (accumulated) that had been known.

To look at business operation wise situation, look at its revenue and cost figure, and profit before tax.

Revenue is sinking while cost is rising for the current quarter which is not a good sign. (low BDI, so low revenue).

I got analogy for this kind of situation. Papa back home late, can't play with the kids (poor result), but Papa buy a lollipop for you (30 cents dividend), so don't cry huh. Haha.

Genting is more a group company.

Genting = Resort (casino) + Genting International + Asiatic + Power generation business.

You can see from the pdf file in KLSE website.

Cost is under operating expenses.

Cash can be seen from cashflow statement.



Attached thumbnail(s)

We should proceed discussion in Maybulk thread then, for purely Maybulk discussion.

I don't know what's wrong with the forum function on our posts. Can't move the post to there at the moment, getting error. Please bare with me, just we can move the discussion to there which is much proper.

Yup, recent years of Resort and Genting acquisition actually are the burden of the company. It origin business casino, hotelier business are highly profitable. But Star Cruise is bleeding Resort money, while UK casinos are burden of Genting.

If not, their origin business would be showing lot of strength and resilience while with tons of cash, it should be able to give generous dividend if not the acquisition.
Just hope Genting newly Singapore casino won't be another which unlikely due to nature of Asian gambling culture, no offence.

My opinion only.

Star cruise impariment loss should be the last and one off since Resorts no longer has equity in it. So it come out with clean now with Star Cruise.

It got 400+ million cash, so it mean out of 2.20 you pay for the stock, there are nearly 1.00 is cash.

7 cents annual dividend is about 3% yield (based on 2.20), so if FD rate is going to 2%, I will take it below 2.00.

The fear of Huaan making a loss is indeed market get it right. It reported nearlly 100 millions of loss on the lastest Q result.

Just found out that Resort is not actually clean with Star Cruise, just its stake is below threshold of associated company of 20%.
Yup, still some chance or writeoff or writeback.

For manufacturing company, there are fixed ovehead cost that whether you produce full capacity or zero capacity which company need to bare.
Even depreciation of machinery and fixed asset will result in loss even you don't produce at all.

So no produce the company might loss 300 millions, produce loss 100 million, so which one the company choose then?

But if material cost > product price, then can tapao liao.

I don't think any industry will suffer until this level. As when this happening, all manufacturers in the world will stop producing eventually product price will go back up.

Product price = material cost + labour cost + transport cost + factory overhead cost + miscellanious cost + profit.

So if material cost > material price then how about the rest, so must be tapao then.

Dividend alone surely cannot cover your capital loss if market head south. But if you are not needing those money, while the stock is fundamental sound, and ability to withstand recession impact (surely profit will drop, but at lesser degree compared to market average), then it is high chance long term future, you will be gaining.

Just like you bought a stock or a reit at 1.20, dividend yield 10%. but it sink to 1.00, but your 1.20 is getting 10% yield so treat it as FD lor.
Even dividend drops to 5% (expected all dividend will be lowered which mostly can't run away with it), you are still earning more than FD rate. When one day, market recover and the price goes back up to 1.20. Even at breakeven point, you are already gain more than your FD.

That's major advantage of having dividend stock.

Btw, I don't know Uchitec. What's the company doing then.

This post has been edited by cherroy: Feb 26 2009, 04:21 PM

Yup, as investors, everything is up to lot of factor uncertainty and possibility even luck play an important part. No matter how good one is, we can't deny certain bit of luck factor is always associated with it especially one able to buy at bottom.

Want higher return than FD, then must take the risk. If not stick to the FD. There is nothing right or wrong.

But don't fall in love with any stock or investment. They are tool to make money only, once they can't, then time to let go.