hng33 i have calculated at this price, HDBS shares will be a graham net-net share AFTER the special dividend. Cash holding will still be more than market price after adjusting for the special dividend.
I think HDBS will not go to PN17 because the existing business (property letting & money lending) can still generate about 25-30 mil a year 9Inclusive of 14 mil interest savings).
This is what we call uncertainty....stock market don't like something uncertain, as if fall under PN17, its margin value will gone, could adversely impact on trader.
The safer cheaper price i think should be around RM 3.50, as it essentially value HDBS other business and property FOC....(special dividend RM 2.50 + net cash RM 1.00)
Nonetheless, I still think HDBS is unfair to minority shareholder...investor invest in HDBS because it is strong in investment bank + capital management etc If HDBS dispose its core business, by right, it should return all cash proceed to shareholder for compensation.
HDBS is never seem as money lender company or property letting company or some unknown business it going to venture...insurance....unlikely....It listing status in Finance counter have to change board to trade division i think
I am sure DBS Bank being the 2nd largest shareholder will want to extract more value as well... I believe DBS will not it's investment just lapse like that...so perhaps they are still looking for disposal candidate for their remaining business.
Unless, HDBS want to further expand its money lender business to involve in credit card line ...just like previous MBF, Aeon credit, RCE....but without bank backing, its cost of funding will be expensive...high risk low return.
Bro jowong7, i thinks your idea is quite good..... let's the price down bottom first b4 buy some to balance your buy in price......... so focus is the key.
I remember last time HDBS drop below rm4 . Is just because of the rumour say that AMBANK n AFFIN offer price for all business from HDBS is Ard 1.0bil - 1.10bil . But now the true is affin offer Ard 1.36 bil for Ib n management company . Not include combodia commercial bank n money lending company . If add in disposal for combodia commercial bank can get another 128million . That mean HDBS already sell the core business with 1.49billion cash .
Hopefully! Was a little greedy earlier not to have sell it when it was above 4.50, contemplated and make a wrong decision! Thought it will go above 5.00! Now holding on with a wait and see mood.
Hdbs pare down the borrowing is a good deal . Because the company can save plenty of interest ... This share just need to take some time only . . It Sure can go to highest price .
Yes jinny you are right . . Now Hwang capital making money from interest business . So if pare down the borrowing . That mean hwang can save interest = making money for the company . .
Jowong7 Hwang capital fully with cash why still wanna borrow from other . . And HDBS say that the banking sector is full with challenging . That why HDBS willing to sell off the business . Anyway HDBS sell off the business with a good price . Now just waiting for the dividend pay back . Jowong don't worry this share sure will make money for u .
I have been waiting for a year,since affin already bought over,when will Huang DBS distribute the cash to share holders ? When are they going to made the announcement for each unit of share,the share holder can get how much cash back ? HDBS please act asap,do not just delay n delay n no news at all.
I guess that hdbs not so fast to announce The special dividend . It must take some time .. At least one or two month time . But is good to us cos we still can buy this share with lowest price .
Yaya jinny some more the company have to cancel the treasury share . That mean u still have plenty of time to buy this share . Now I expect hdbs will enter to o&g sector .
2767max...if u buy in at the closing price i.e. 4.05, and they pay 2.50 special dividend, what happens to the other half of the money? Wl it be stuck in the new company that they plan to form?
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....
gark
924 posts
Posted by gark > 2014-01-24 10:32 | Report Abuse
hng33 i have calculated at this price, HDBS shares will be a graham net-net share AFTER the special dividend. Cash holding will still be more than market price after adjusting for the special dividend.
I think HDBS will not go to PN17 because the existing business (property letting & money lending) can still generate about 25-30 mil a year 9Inclusive of 14 mil interest savings).