As some readers already know, I am a believer of dividends more than other things and take my time to analyse these. To me, corporate action is important as nobody sane would take out his wallet and throw his money without ample thinking.
Without further ado,
Here are the salient points
1) 16 years of history available.
2) skipped dividends 2004-6, 2009-13. Thus highly erratic pattern. Likely point to cyclical business and cyclical cash flow
3) 2 right issue 2000 and 2008. something which doesn't look good in view of the erratic dividend history.
4) no discernible raised trend can be seen.
I shall give it a miss.
IMO this counter, since dividends cannot be relied upon based on the above analysis, one will need to use share price gains to make money. Question is when will that happen? What if it doesn't? Then what?
Dividends represent cash flow and are like blood to the human body.
The above represents my own opinion, and which may be flawed. Investors/traders can still make money buying/selling penguin.
Without further ado,
Here are the salient points
1) 16 years of history available.
2) skipped dividends 2004-6, 2009-13. Thus highly erratic pattern. Likely point to cyclical business and cyclical cash flow
3) 2 right issue 2000 and 2008. something which doesn't look good in view of the erratic dividend history.
4) no discernible raised trend can be seen.
I shall give it a miss.
IMO this counter, since dividends cannot be relied upon based on the above analysis, one will need to use share price gains to make money. Question is when will that happen? What if it doesn't? Then what?
Dividends represent cash flow and are like blood to the human body.
The above represents my own opinion, and which may be flawed. Investors/traders can still make money buying/selling penguin.
Hey Paul, I feel the same way about Penguin too, dividends very erratic.
ReplyDeleteHi GMGH,
ReplyDeletethanks for your reply. I guess u will avoid it too?
This stock has never been a dividend stock. If that is your yardstick, there is no need to consider this stock at all.
ReplyDeleteYes. I agree.
Deletethanks for reply.
regards,
Paul
Hi Paul,
ReplyDeleteThanks for the views in penguin. just like to ask your view on hok lian seng with pe ratio of 3 and 9% yield?
My pleasure.
DeleteHls pe3 yield9%
Qns to ask
whats the downside protection of this stock? I doubt 9% yield can be repeated yr after yr. I believe its trading above book.
Though cash flow is impt, i prefer capital protection.
I will take a cautious stance to hls.
If such high yield is one off thing, price will come down accordingly after xd.
Thats my view.
(not vested in hls)
Thanks once again.
Paul