Whoa.. US markets so far going down the hill very steeply..

There's no need to be surprise. It will drop at least below 5000pts before recovering. No matter what type of stimulus they introduce it will just be a short rally, it needs time to heal.

oh my bad. sorry for the wrong info. Suppose to be the clearing fees

5000?
That would take it back 15 years to 1995 level!!!

I think this is just over-selling!! I see there will be pretty good support at 7000.

This post has been edited by danmooncake: Feb 24 2009, 02:56 AM

ahhh forum is up, missing you!

today's highlight is on TM!!!

wah....finally......so addicted to LYN......cant work properly when it's down

Tm reported good result.

KUALA LUMPUR: Telekom Malaysia Bhd ™ will maintain a high dividend payout ratio of 90% even after a capital repayment, according to group chief executive officer Datuk Zamzamzairani Mohd Isa.

TM has proposed to undertake a RM3.5bil capital repayment whereby its shareholders will receive a cash payment of 98 sen for every share held.



“The proposed capital repayment will not impact our business operations and ability to maintain our dividend policy. It will be funded by the anticipated repayment from TM International Bhd (TMI),” Zamzamzairani told a media briefing to announce the financial results yesterday.

TMI has undertaken to pay RM4bil owed to TM by April 24.

“We decided to return the excess cash to our shareholders after factoring in our future requirement. The balance will be used for our operational expenses,” he added.

Group financial officer Datuk Bazlan Osman said the proposal was subject to shareholders’ approval in an EGM to be convened at a later date.

He said the exercise was expected to be completed in the second quarter or early third quarter.

TM’s net profit for the fourth quarter ended Dec 31 fell 72% to RM164.8mil from RM592.5mil in the previous corresponding period, despite a RM393.3mil, or 18.7%, rise in revenue.

Its earnings per share (EPS) for the period fell to 4.8 sen from 17.2 sen before.

For the full financial year (FY08), TM reported lower earnings before interest, tax, depreciation and amortisation (ebitda) of RM2.9bil against RM3.2bil in FY07.

Its revenue, however, increased to RM8.67bil from RM8.29bil previously contributed by higher non-voice revenue.

Profit after tax and minority interest (Patami) for FY08 was 73.2% lower at RM229.3mil compared with RM856.7mil in FY07.

On a normalised basis, Patami improved by 64% to RM708.5mil from RM432.2mil previously.

The company also announced a final gross dividend of 14.25 sen per share less tax of 25% amounting to RM382mil.

Bazlan said the lower ebitda was largely due to exceptional charges, such as specific allowance for doubtful debts and revenue adjustment for certain foreign VoIP debtors, employee share option scheme cost, diminution in value of quoted investment, unrealised translation loss on foreign currency borrowings and realisation of foreign exchange reserve on disposal of Societe Des Telecommunications De Guinea S.A.

He said broadband remained the key growth driver with a year-on-year growth of 25.8% and contributed 17% to TM’s overall revenue.

TM continued to win new customers and maintained leadership position in the broadband segments registering 1.6 million customers as at end-2008, a growth of 26.7% from 1.2 million customers in 2007.

To a question, Baslan said the group was expected to spend RM2bil to RM2.3bil in capital expenditure (capex) this year.

He said the budget included its “business as usual” capex and for the high-speed broadband (HSBB) project.

Going forward, Zamzamzairani said TM was confident of maintaining the current level of business with slight revenue growth of 1% to 2.5% in 2009 as announced in its headline key performance indicator on Nov 11.

Commenting on the HSBB, Zamzamzairani said TM was actively undertaking the implementation of the project and expected its first commercial roll-out for wholesale in the second quarter and for retail in the fourth quarter.

Meanwhile, Reuters reported yesterday that TMI was looking to raise more than US$1bil in a rights offering in the first half, citing an unnamed source with direct knowledge to the deal.

According to the report, TMI was looking to raise capital to reduce its RM10.45bil debt. It also said that JPMorgan and Goldman Sachs were advising TMI on the fund raising.

A TMI spokesman said nothing had been finalised yet, but the company was on track to announce details of its capital-raising plan in the first quarter.

It is good for TM but bad for TMI.

At least TM got some dividend which is 2x more than FD rate, which seen attractive enough, but growth wise won't be too much, it will become a boring dividend stock.

FD rate today being revised to 2% except 1 year tenure 2.5%.

so fast revised liao ar.....i tot usually they will announce in few days....
div by TM looks like a lot....but it seems nt much ppl r buying also....
btw...KLCI red today.....against the regional pattern...again! hahaha

Those efficient one are quick to react, one day earn or save them million by revise their rate.

With FD so low, dividend stock is the must buy list already. How can a 2% can offset inflation?

Genting can buy liao like this even kedekut company like Genting, its dividend yield is about 2%. So better have Genting rather than putting in FD.

This post has been edited by cherroy: Feb 25 2009, 02:39 PM

Cherroy...care to comment bout TM div of 98 cents....tat's a lot buy how come price not surging a lot one???

not to forget, the proposal of 98 sens capital repayment by TM.

after capital repayment, TM price would be readjusted, am i right?

p/s: lol kinwawa, we have same queries in mind

This post has been edited by panasonic88: Feb 25 2009, 02:45 PM

Fianlly back on line
Region green KLSE red

just curious why is it bad for TMI?

sorry might have missed out on the topic, cause I am only recently monitoring TM stocks..

Personally I feel that TM stock is a bonanza dividend + capital repayment, as for its future undertakings towards 2010 i think possible TM will just fade into the background after this. Most jobs they've got are mostly gov and monopoly over telecoms industry, whilst other rivals are taking bits and pieces of TM apart slowly sucking it dry of investment opp.

TMI on the other hand, from what i know is probably fail JV abroad and being saddle with debt, but as to volume and intra day opportunity i think TMI offers good flactuation in price. fundamentals on the other hand speak different, whats its true value is truly a mistery.

zi Pee tahan without LYN in the morning



This post has been edited by sampoo: Feb 25 2009, 02:51 PM

The capital repayment will not sustainable (just one off, no more in the future), market won't react too much, as prior to this, TM share has surged a lot lately, from 2.80 level to 3.40.

The market response more to the company reiterate it will maintain 90% dividend policy which at least calm down or put a stop of speculation TM no longer can pay generous dividend after the capital repayment.

Simple claculation, share price now 3.50 so minus 98 cents, become like 2.50. With annual EPS around 20 cents, 90% dividend policy mean 18 cents of dividend, So if share price goes to high like 4.xx, then dividend yield will be below 5%, which is not that attractive anymore, as TM's EPS is expected to drop in line with economy recession. So around current price level, seems a bit fair.

Anything more than 4.xx is seems a little bit too expensive.

As at 4.xx, if EPS drops to 15 cents or so, dividend around 10 cents, which just mean 2~3% yield only, comparable with FD rate already.
As TM's prospect of growth is rather limited.

This post has been edited by cherroy: Feb 25 2009, 02:53 PM

i agree with aurora97.

TMI is nice to hold for intra day play / short term.
the price is moving up & down in the region of 3.00 - 3.30

if i own 1000 units of TM share, which mean i can get rm 980 dividen ?

yes, and share price would be re-adjusted accordingly.