Posted by KC Loh > 2012-12-06 11:10 | Report Abuse

yes, Digi mentioned they need to pay somewhat the tune of RM700mn+ (if the figure is rightly remembered) to MCMC! pre-emptive strike against reports like this: http://klse.i3investor.com/blogs/valueinvestorresearchklse/21887.jsp

i surely like their management!

Posted by liew kimguan > 2012-12-06 11:50 | Report Abuse

KC, may u explain? i not so understand for the blog mentioned.

Posted by KC Loh > 2012-12-06 11:59 | Report Abuse

In simpler terms, they need to pay for the new licensing to MCMC. The management of Digi expect lower payout of earnings maybe the following quarter or two. Unlike previously earnings and capital repayment. If they go the business unit structure, the advantage is they can pay from cash flow instead of reported earnings.

Maxis and celcom expected to take the bulk of the LTE and share. The analyst is forecasting digi could be sidelined. But digi may have some tricks up its sleeves, like buying up TdC for example.

Posted by liew kimguan > 2012-12-06 12:03 | Report Abuse

conclusion, DiGi will pay less dividend in 2013~2014?

Posted by KC Loh > 2012-12-06 12:06 | Report Abuse

Possible one off for one quarter. But possibility of your conclusion is always there. The need to raise cash to buy TdC as well as raise their stakes in Digi too if that's what the management intends to do!

Posted by liew kimguan > 2012-12-06 12:10 | Report Abuse

a bit dissapointed since may be they will not pay dividend quarterly. if is true, want to switch to other stock.

Posted by KC Loh > 2012-12-06 12:22 | Report Abuse

the CEO and CFO didnt say not paying dividend. I think what is implied here is, don't expect a generous one!

Posted by KC Loh > 2012-12-06 12:27 | Report Abuse

i am saying this is because we are still on interim dividend pay out basis and not final one. the fact that they are pursuing a business unit structure should still augurs well for shareholders. I really like Digi current management because it seems to me to be sensitive to shareholders and definitely shareholder-friendly!

Posted by liew kimguan > 2012-12-06 12:55 | Report Abuse

ok, thank you, KC.

Posted by KC Loh > 2012-12-06 12:59 | Report Abuse

ok my friend. no thanks is required. we learn!

Posted by Raymond Tiruchelvam > 2012-12-06 14:17 | Report Abuse

just for info after the Nov 12 div issuance, Digi is still No. 3 with regards to div yield at 4.61% behind maybank and maxis, but having the highest payout ratio in bursa at 128%, so its speaks a lot. This counter has never failed me, and its the single biggest money spinner for me (on both revenue and capital gain, of course amongst other freakin loss making investments ie. ijm-wa..... errrrgh).

MCMC can do all they want and take an adopted child approach towards Digi, but my money is on Digi :)