“But we are also always aligned with optimising shareholders returns. If you look at KPS, historically, whenever we have divestments, there will be special dividends,” he assures.
FROM ABOVE WE WILL SEE ANOTHER "SPECIAL DIVIDEND" WHEN KING KOIL MATTRESS IS SOLD TO UNLOCK VALUE BY KPS
From PBA the lesson is this. For fixed tariff businesses, people get depressed over a very long time, because cost everyday go up, but tariff does not, resulting in lower and lower profit each year.
At some point, the lower profit results in lower maintenance and thus more problem pops up, necessitating an increase in tariff. When tariff increases, the operational leverage results in a huge increase in the share price.
The other thing to keep track of is lower cost of materials in fixed tariff industry, which is basically coal back in 2015 for TNB.
I sold off Pba at 2014 peak at Rm1.50 And switched to others It was a correct move then After 2014 for one decade with no tariff increase plus Dap gave free water in Penang to win votes Pba has been trending down for one decade till now At its low Pba even fell to 79 sen Amazing indeed just 22 sen tariff increase Pba can shoot up to Rm2.50
At Rm2.50 i think another opportunity to cash out and buy other laggards with potential better
kelvin_ik4u Plam oil is always like that, start plant require cash/fund/debts to build empire. Once it empire steady and cash generated machine, it will be an auto-pilot for next 18yrs. This counter will be the next shine palm oil for this year.. it's CAGR 21% compounding for next 3 yrs, now Bumitama just sit and collect money as all it palm tree is 6-7yrs now with FFB nucleus oil >24%, 107% growth vs Q1'FY13. Strongly believe this counter will start give dividents moving forward. Since CPO price is up ard ~RM2700/tan metric, I believe will share price will skyrocket this yr. Target $2.00 before end of this year 2014. 19/05/2014 6:16 PM
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
calvintaneng
53,365 posts
Posted by calvintaneng > 2024-01-18 01:51 | Report Abuse
www.eaglevisioninvest.com