Any accountant here? I heard they have to be prudent in accounting standards. Gains in share price can only be recorded in the books once sold/realised. But if losses, and forsee continued losses, than have to provide provision. Can anyone confirm this.
@hornbill In compliance with the accounting standard, the management have to recognise the increase or decrease in fair value of the shares trough other comprehensive income if the shares recognised as asset held for trading which is long term investment on the initial recognition.
Unless they sold it, then only the gain/loss in disposal will be reflected in other income under profit & loss.
Cash + financial assets = RM150 mil + other assets ===> Net assets per share = RM1.20 The value is there, how much are you willing to pay for it? Btw, now can get it at price <= RM1.00! With expected dividend yield of about 4.5%, how low/high can it goes?
If its share price doesn't go up, just keep the shares and get the dividend which at 4.5 sen a share is still 50% higher than the one year fixed deposit rate.
4+ months to go for dividends. Normally announce end of Oct and pay 2nd or 3rd week of Nov. This is a good company, always share profits with shareholders. Hoping with the sale of securities, will able able to give higher dividend this year.
Net assets per share = RM1.20, paying RM1 is not necessary mean u r getting cheap deal. If we using the same logic, does it making more sense to invest into super undervalue share such as OSK? Which you can use RM1.60 to buy RM3.15 NTA. Which has more upside and also give around 3% dividend (yes, i know it is lower than Hexza)
if OSK is undervalued, here come another question why the price low for many years?
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....
Goldchia MH
415 posts
Posted by Goldchia MH > 2017-06-09 18:08 | Report Abuse
They also hold lot of GOLD that you don't know