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Raising S$209m while paying S$153m-210m annually as diividends
http://www.businesstimes.com.sg/companie...nvestments
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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(31-08-2017, 02:51 PM)Clement Wrote: (31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends
http://www.businesstimes.com.sg/companie...nvestments
To me, it looks like management is signalling that the shares are overvalued.
I concur. It will be a (major) red flag if Mgt raises more cash from share placement than they give out in dividends.
without any pending CAPEX or specific debt retirement,
If they raise cash via share placement at 52weeks high, most probably they think their shares are overvalued (cost of equity < cost of debt).
If they raise cash via share placement at 52weeks low, most probably they are desperate for survival
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
Posts: 3,773
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(31-08-2017, 02:51 PM)Clement Wrote: (31-08-2017, 12:14 PM)specuvestor Wrote: Raising S$209m while paying S$153m-210m annually as diividends
http://www.businesstimes.com.sg/companie...nvestments
To me, it looks like management is signalling that the shares are overvalued.
In their last equity raising in Oct 2007 they raised SGD208.4m @ SGD2.58. Looks like they have been good picking peaks
I don't think they are in any sort of S-chip trouble per se. They have been paying dividends since 2008 without break. BDIY rebounded and bulk shippers have seen their results recovering.
But VBs here know that YZJ is one of few S-chips that I am partial to
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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