Seems 1mdb reputation is preventing people from looking through to the opportunity of this bank. Maybe a harsh awakening will come one day to the doomsters.
Super Good news ! More & more companies rushing to be listed into KLSE ! There are 6 companies going to be listed in KLSE for July & early August 2023 !
Long term chart suggest that the worst is over - the bottom is likely to be the bottom observed in 2020-2021. The bank is under-valued but is under-valued for a reason. It doesn't share its wealth with shareholders. Despite earning 52 sen, it only paid 18 sen. The prior 3 years, total dividend is a measly 5 sen, 0 sen, 13 sen.
And this bank has a bad reputation to look after shareholders.
Many people look at under-value first. For me, I look at how well it treat shareholders in the past over many, many years. This bank, my confidence level, to take care of me as shareholders, is much lower than other banks like Maybank.
Still, some of the best speculative returns happens when perception changes. So, I own a very small amount for speculation only, but I'm not topping up, because I am just waiting to dispose at the swing high price. This is not for marriage, but just a one night stand. You never marry someone who doesn't take care of you over past decades.
If compare small banks like BIMB over the past 8 years, I very much prefer BIMB. AMBANK dividend = 18.3, 5, 0, 13.3, 20, 15, 17.6, 15.5. Sum over 8 years = 104 sen. AMBANK price 3.82 BIMB dividend = 13.8, 10.9, 12.6, 16, 15.5, 14, 13, 12.2. Sum over 8 years = 108 sen. BIMB price 2.16
It is very clear, BIMB takes care of its shareholders much, much better than AMBANK. Both companies are under-valued, relative to its NTA and PE.
But I owned BIMB 10 times the size of my ownership of AMBANK, because I prefer for the long term, the way BIMB shares its profits with shareholders. It can still improve a lot as it is still only sharing 38% of its historical earnings only.
AmBank cut dividends in recent years to rebuild its capital after paying thr 1MDB fine/penalty. It's public info, in the news. Now it's ready to resume its previous dividend policy already.
Singapore bases Great Eastern Holdings is in talks to buy MetLife Malaysian ventures in a deal that could value AmMetLife Insurance at up to US$300 million reported Bloomberg.
It reported that according to sources, OCBC is conducting due diligence on AmMetLife Insurance and is seeking regulatory approval to clinch the deal, the people said. A transaction could value AmMetLife which the US company jointly owns with public listed AMMB Holdings at between US250 million to US$300 million the people said.
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....
NESARAJAH1
394 posts
Posted by NESARAJAH1 > 2023-03-24 12:32 | Report Abuse
Average down. Share buy back is a good sign