Let's talk about fact on possibilities to issue Bonus or Treasury shares. As at 2q, there have RM91 mil retained earnings. So, bonus issue of 1:2 is not an issue and is very LIKELY ! PH has 6.7 mil treasury shares at RM2.8 mil (or RM0.43 per share ONLY)....(dam cheap)....(I hope the management did not quote it wrongly or I did not calculate wrongly (source : Note A5 with balance sheet). Based on this ratio, probably 5 for 100 bonus treasury shares ?? Anyway, if they decide to sell the treasury shares to the market, it is "good news" too, provided they distribute the gains to the shareholders....But I don't think management will do that because they have RM60.8 mil CASH sit on the bank, waiting to declare as dividend...hahha
Icon, a self proclaim wise men shld not speak stupid things like epf money no longer there. Epf money won't evaporate ok. The only thing is value of money depreciate. And those nanny come out work in singapore not because not enough money retire. They intentionally ask them back work to provide them chance to earn and have contribution to society. Most I saw working happy as ppl respect them.
@paperplane2 When economic crisis comes by, nobody can guarantee not to have a mandatory hair cut in your bank savings and EPF. That's pretty much an evaporation edi, at least that happened to Cyprus.
Actually it is not wrong icon 8888 said that, nowadays crisis in countries, anything can happen.... With so much corruption being unveiled and our PM is in no action mode, the truth would eventually being, how bad it is no one knows but it must be bad because people in the know already protesting it. It must be extreme because people in the know are not angels as well.
Either way the economy and investor confidence level will suffer
Actually it is not wrong icon 8888 said that, nowadays crisis in countries, anything can happen.... With so much corruption being unveiled and our PM is in no action mode, the truth would eventually being, how bad it is no one knows but it must be bad because people in the know already protesting it. It must be extreme because people in the know are not angels as well.
Either way the economy and investor confidence level will suffer
Politic will affect the share market, but Poh Huat's fundamental is very strong as the factory is in Vietnam exporting furniture to other countries. The sales are in US dollar. However, it is good practice to be caution in case of any unforeseen circumstances beyond our control. Get ready the money to go big for investment in the market when it ready plunge. All businesses have risks. no venture no gain and you will forever just a normal persons in the street.
Given the amount of retained earnings available, I see no reason why Pohuat should not do one. Besides, peers like Homeritz has just concluded a 1 for 2. Previous 2 bonus issues were end July and August. Let's see if history will repeat itself.
Bursa amended Poh Huat 3% dividend ex-date to 21/7 from 20/7 "due to the possible closure of the Exchange if the first and second days of Hari Raya Aidilfitri fall on 18 and 19 July 2015"
I may make some mistakes in my 7/7 comments. Bonus Issue was paid out from The Company (not consolidated level) reserves. The Company has relatively low reserve as at 31/10/14 of RM23 million because the Company had issued 2 bonus previously for the last 10 years. Based on this, Poh Huat can only issue roughly 1:10 bonus issue if they really want to do. I think management may not do that as 1:10 may not attractive as compare to its peers. In this case, bonus issue is NOT LIKELY. I still hope they can distribute the share treasury as "bonus" which is more tangiable ! Should they want bonus issue, can consider splitting shares from par value of RM1 to 50 sen.
pathfinder, bonus issue can be issued only out from "the company" (not "consolidated") level. Therefore, we cannot use the consolidated figure of the RM90 million to declare the bonus. That's why I clarify my "mistake" on 11/7 from my earlier comment posted on 7/7.
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....
paperplane2
3,235 posts
Posted by paperplane2 > 2015-07-07 08:20 | Report Abuse
now MYR 3.80 liao, next yr sure expect rm4 when us hike soon!
So ! POhuat still good buy