MTQ Corporation

[Musicwhiz]

harloh, should have brought more before the CD... the share price was also 77cts before just the last few days...
no wonder some players suddenly bid up the price..

aiyah, some market manipulations at play.

Next year, will not be CAUGHT by this manipulations!

I won't call it manipulation. The 1Q 2013 results were released and the market re-rated the stock significantly (+10%) since then. It would of course be helpful if more people sold it down post-XD, but this is something which cannot be controlled and depends on prevailing sentiment, and also expectations of the prospects of the Company.

[Musicwhiz]

MTQ today closed at 86c/share. The scrip dividends are being offered at 76.5c/share, and the closing price today represents a premium of 12.4%. Shareholders who accept the scrip would essentially be compounding their dividends and purchasing shares at a price cheaper than the current market price; and without incurring transaction costs as well!

The forms for election of scrip/cash have yet to arrive, but I have made up my mind to elect for scrip.

This would make it my fourth scrip dividend. The previous scrips were issued at prices of 83c, 82c and 73c respectively, so 76.5c represents sort of a mid-point of those prices. Also take note that since the very first scrip was offered (at a higher price no doubt), the business has since grown substantially to include the investment in NMS, Bahrain operations and new facility Phase I coming on-stream and the successful acquisition and integration of PSL (Premier Sea and Land).

[shn]

The forms for election of script/cash will be despatched on or around 15 August. I will elect to receive script too as the discount is quite substantial. The excellent Q1 results just released will make it impossible to buy it at below $0.8 in the near future.

[shn]

Sorry, after doing the calculation; I think the number of lots I have is too small to make it worthwhile to opt for script dividend.

[Musicwhiz]

Sorry, after doing the calculation; I think the number of lots I have is too small to make it worthwhile to opt for script dividend.

Hi!

Understand what you mean, but when I accepted my first scrip I also did not have enough to even make up one full lot. Scrip, however, does give you the chance to compound your dividends so that you'd receive more absolute dividends the next round.

But it's a personal choice; just relating my own experience.

[Musicwhiz]

Yesterday was the last day for submission of the Notice of Election for the upcoming final dividend of 2c/share, to choose whether one wishes to receive it in Cash or Scrip. Just a reminder, the scrip issue price has been determined at 77c/share, which was an almost 10% discount to the then prevailing last done share price of around 85c.

I have opted to receive my entitlement in scrip, as I believe in the future growth of MTQ and their Oilfield Engineering Division, even though near-term earnings will not be great as Bahrain is still taking off and NMS is still in its "restructuring" phase.

For those who opted Cash, the dividend will be paid on September 19, 2012. For those who opted for scrip, the shares will be credited to your CDP account on the same day (or one day later).

[brattzz]

i took scrip too, though i think the current share prices will adjust back to the scrip price..
general weakness of the market...

[pianist]

Sh**..i been too busy with work these days...i cant remember if i have submitted this round of scrip...how do i check? there too many rounds of scrip submission for this counter...the last time i submitted seems long time ago..but may be the recent 4th one...

[Musicwhiz]

Sh**..i been too busy with work these days...i cant remember if i have submitted this round of scrip...how do i check? there too many rounds of scrip submission for this counter...the last time i submitted seems long time ago..but may be the recent 4th one...

If you are afraid you may forget, then just indicate once and for all that you'd like scrip for ALL future dividends (the form gives such an option), then in future it will be scrip by default.

[Musicwhiz]

I have not seen the scrip shares in my CDP account as of this typing!

The announcement below sheds some light on the scrip dividend scheme for the FY 2012 final dividend:-

http://info.sgx.com/webcoranncatth.nsf/V...E00117956/$file/Scrip_Dividend_Issue_And_Allotment_of_Shares.pdf?openelement

Shares before scrip issue = 97,761,042 (refer to my post #142 within this thread Page 15)
Shares issued for scrip = 1,238,784 (New)
Shares after scrip issue = 98,999,826

Cash Outlay Assuming all dividends paid out in cash = $1,955,220.84 (97,761,042 shares x $0.02 final dividend).

Using $0.77 scrip dividend issue price, assuming ALL shareholders received scrip, a total of 2,539,248 shares should have been issued.

Thus, scrip take-up rate = 1,238,784 / 2,539,248 = about 48.8%

This is much higher compared to the interim dividend take-up rate of about 10% (nearly 5x more)! Could it be because of the much improved 1Q 2013 results announced by MTQ which has made shareholders more confident in choosing scrip, as an indication of better times to come? Perhaps more shareholders have decided to reinvest their dividends.

(Note: The Company saved about $953,863 in cash by paying out scrip instead of cash dividend)