B10. DIVIDENDS The Directors have recommended the payment of an Interim Single-tier Special Dividend of 6.5 Sen per ordinary share, amounting to RM65 million. The date of entitlement and payment will be determined later.
Investing v Gambling...2day, my MGM China shares were SOLD @ HK$8.45 only becos I forgot about them after buying from HK$5.76 down to 5.38 in Sep/Oct '21 & they sank further & stayed DOWN for 13 months...Tumbled to as low as HK$3.01 last month...another gambling miracle like Comcorp.
Thank you for the compliment! As long as we know the co. has huge cash reserves & NO DEBT in this rising interest rate environment & the charter rates are still profitable & the 2 owned ships still have a mkt value of 280-300 mil, pocketing the 100 mil dividend shld not affect the co's core biz in the medium term. Better than throwing a large chunk of that $ into a low margin biz just for the sake of deworsifying(diversifying)!
If my Comcorp can go from 2.5c then suspended & limit-up 3X to 99c & eventually earn 24% on my 79c & my MGM China can rise from HK$3.01 last month to HK$8.82 now despite losing over a billion & its NTA dropping by 85%, Maybulk can revisit $1 in 2023....
RM0.10 dividend for this time is actually a capital return after 2 ships sold. Maybulk still a cash rich company after this capital return. Currently cash in bank is RM 359 mil, cash spent for this capital return is about RM 100 mil, balance RM 259 mil.
Since the investment on Tunas Manja Group had been withdraw (I feel relief after heard this news), i hope Maybulk can start purchase new Panamax ship, as Panamax ship price is now halved compared to the period when Maybulk sold its 2 Panamax ships, and Panamax index is relatively stable compare to Capesize index.
Baltic Dry Index has risen 39% since a month ago with the Panamax index about 9% higher & stabilised at the highest levels of 2013 & 2018, 60% higher than the average levels between 2012-2020 when the co. incurred huge losses. I estimate 4Q result to be in line with the 1Q '21 result based on these index levels or perhaps half due to the smaller fleet size which still gives it a reasonable PE of 15-20 going fwd.
This BDI rise not contribute to Maybulk earning, as current rise in BDI is majorly increase only in Capesize. The Panamax, which Maybulk focus on, are actually decreasing.
i will foresee Maybulk may again report lost on this quarter, as the average of Panamax on this quarter is below 1700. But I think next quarter will be better as based on history chart, Panamex rise always slight delay compare to Capasize.
Their 2 ships are actually Kamsarmax which is 85k > 70k upper limit for Panamax class. I expect these 2 will command higher charter rates than Panamax & I disagree with the loss forecast, predicting 0.5-1.1c EPS
Below only compare this quarter to previous 2 quarter, as quarter before Jun 2022 Maybulk still holding more ship compare to now, so only quarter Jun 2022 & Sep 2022 condition is same as this quarter:
Jun 2022, Panamax average 2957.48, Supermax average 2627.33, EPS 6.1 cent. Sep 2022, Panamax average 1910.37, Supermax average 1790.55, EPS 1.2 cent. Dec 2022, Panamax average 1665.23, Supermax average 1243.53, EPS ?? cent.
with above data, simple calculation can lead you to the result Maybulk may report lost on this quarter
No use discussing when the factors determining the final no.are so varied & unknown, with the BPI fluctuating between 1,460 & 2,236 between Oct 1 & now...I stick to my forecast of a small +ve EPS to be announced end-Feb '23.
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Posted by wahd > 2022-07-08 13:04 | Report Abuse
When Managment going announcing company direction?