Thanks @yuan and @ Alex... I 100% support DRP... one of my friend got a stock 1000 unit after 10 years become 6000 unit (DRP) the stock value also double....
I personally would prefer cash dividend as i can determine which cost to buy if i want to top up MBSB share. Furthermore DRP will dilute the shares, now is not a good time to do so as they just did a right bonus 1 year ago.
FongKh, it already happened today. Good early start but couldn't sustain the day. Retail investors with quantity shares would like to cash out some profits to boost their wallet after CNY spending and also to buffet against the coming GST impact.
It mentioned there's 2 options, a) is opt for DRP, b) is opt for dividend, it that an option for individual where each shareholder can have his own choice or it is an option for all the shareholders to vote for majority?
DRP is just a scheme by the company. This is because it has confidence in itself for the future. However, if the stock price is downtrending, then who wants the stock?
Slrs should exercise restrain. Mbsb has just come off from an aborted merger plan. Its px came off subsequent to that. It's natural. However, you don't want to sell a stock that has made some good money ( going by what data is available), declared a 10+2 dividend which gives a very good 5.45% DY, offered a DRP ( indicating prospective better pxs for the stock) plus technically a better picture than a couple of weeks ago as well as a very positive assessment by its CEO (theEdge). If at all this stock takes some time to take off it is because the AGM has first to be held. Meanwhile the support at today's level of about 2.20 is encouraging. Should the px break 2.20, frankly one would not know where is the level to buy as the support would shift. There are many 'big' boys out there. 'Big' boy A would not know about big boy B or C or D etc2. So don't worry, stick to your purchase cos' this is as good a stock as they come.
Miconception on DRP here....like Public Bank and BIMB, rather than coming out with cash payout, issuance of shares will retain capital....and share price will gain in future...just need some patience :)
One thing to consider for drp. This might create odd lots (for small investors) and selling odd lots sometimes cant do it via online system. Calling remisier to do it will be expensive. Calculate the cost before jumping into drp.
yeah.. i kena once... so my airport shares left some units as dont want to sell via call... every time takes few cents of div :) and every year get annual report because of the few units..
DRP benefits the big shareholders mainly as they could buy a lot of shares at a discounted price without coming out with their own money. If DRP continues for a few years, they will end up having bigger and bigger shareholding in the company without using their own money.
Under a new business plan to run from 2015 to 2019, MBSB is seeking to diversify further from its traditional personal financing business, where growth has been dampened by regulatory curbs. It targets a 70:30 exposure ratio between the retail and corporate sectors, from the 85:15 it has currently.
For FY14, MBSB announced an exceptional profit after tax of RM1.01bil, mainly on deferred taxes amounting to RM366.06mil recognised in the fourth quarter.
At RM2.82, MBSB was valued at a price to book value of 1.91 times which was higher than the valuation attached to both CIMB and RHB Cap then.
On concerns whether MBSB would not be able to sustain its impressive earnings growth in view of a lower loan growth target of 8%-9% this year as compared to 12% in 2014, Zaini said there might be a temporary dip in the first and second quarters of financial year 2015.
However, to cushion a fall in income, he said the company had adopted a three-pronged strategy – to ensure a strong collection model, keep costs low and grow the business on the corporate side.
“The next quarterly result is important for us as it would set the base for our growth curve. I don’t think we can sustain the 29.6% return on equity (ROE), but as long as we can sustain a reasonable rate of above 15%, it is good as this is the standard of the banking industry.”
To maintain ROE at a decent level, MBSB is planning to increase its fee-based activities to 10% from 4% of total income currently. Among other strategies it is undertaking this year is pricing its products based on a risk-based approach that should commensurate with better margins.
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....
Joel
4,580 posts
Posted by Joel > 2015-02-24 21:34 | Report Abuse
Thx Fong Kh.
Div 不是取消,是DRP。
不是讲不好的。
个人看法不一。