The dividend is for FYE2019, meaning investors get paid without waiting until Dec 2019 like a FD Receipt from the bank. This is a very good one.
Although the dividend is only RM2.50 for each 1000 shares, but to pay for 1.3B of shares (1,300,000,000 / 1000 X RM2.50 = RM3.25M), it takes RM3.25M to fulfill this exercise. So, another plus point. I mean the ability in the cash-flow considering the nature of the business or the size of the company. Btw, each 1000 share costing say RM240.00 and earning RM2.50 means the rate is 1% which is at least a consoling one.
Going forward, if the market price can become cheaper, expectedly more people would buy more although the IPO price was RM0.15 each share. How low it can go? It has the landed properties also.
I used to have UDA paid RM60 as dividend a year for for at least 2 years consecutively. I received the interim (RM30) & the final (RM30) and the market price than was about RM0.90 a share on the average. So, it is better than putting a thousand Ringgits in the FD. Morever, it has the potential of capital appreciation.
As for Perak Transit, if investor paying RM250 (1000 shares, basing on RM0.25 a share) can received say RM5 of yearly dividend (RM2.50 interim & RM2.50 final) then the return is 2% p.a. So, it should attract even overseas funds which are placed in their banking FDR the least which paying less than 1% a year. So, i look at the dividend paying and lingering around RM0.23 for some time is just under-value, with further analysis by the experts.
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....
NoPainNoGain
1,018 posts
Posted by NoPainNoGain > 2019-01-30 15:56 | Report Abuse
False hope there.Son's price back down.Mother doesn't even move.