Dividend provides a 'floor' for shares during bear markets. DR NEOH SOON KEAN
Stock markets of the world, especially the Malaysian/Singaporean market is not readily predictable. They can collapse so easily into a 'bear pit' with little warning. If we wished to protect our hard earned capital, we must be defensive in our investment approach. One of the best defense is to buy shares with reasonable dividend yield (i.e. a yield of between 1/2 of deposit interest rate). If we buy a share because it pays a reasonable dividend, our loss is likely to be small even during periods of sharp market decline.
For example, we can buy a share which pays 30 cents dividend at Rm5.00 a share and this gives us a dividend yield of 6 per cent. If the share market goes into a sharp decline, the amount this share can fall to is limited by the fact that it pays a 30 cents dividend. If the price is to fall to as low as Rm3.00, it will be giving a dividend yield of 10 per cent which is about as good as what one can get from fixed deposit but with the additional opportunity to capital gain thrown in.
Most people can see that at that price, the share is probably a good bargain and it is therefore unlikely to fall any lower. It has been my experience that with the exception of mining counters, a dividend yield of 12 per cent seems to be the floor below which most stocks will not drop. In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more.
the make loss in last quarter and expecting loss in current quarter, i believe no dividend moving forward...
road maintenance is doing very well, but expect new gov will skew the margin, the infrastructure and property are making loss few quarter already, launching of their property is delay since 2017 until today...but ckp son still happily collect handsome salary, their 2 years mall also making loss....
Go check up Protasco 15 years history from years 2003 till 2018
There were bad quarters and even bad years. Yet Protasco maintain consistent dividends throughout those 15 years history.
Road maintainence projects with Perak, Trengganu, Federal Roads and Sarawak are locked in long terms of 7 years to more than 12 years stretch.
And these give gradual and consistent revenue and profits. PH Govt might or might not give future new projects. For that is still a guess. What we know for sure is this:
1) PROTASCO HAS LOCKED IN REVENUE FOR MANY YEARS
2) THERE ARE NO COMPETITOR IN SIGHT AS COST OF ENTRY IS HIGH. THE JOB IS HANDS ON DIRTY WORK THAT FEW WANT TO DO.
3) PLUS, OPUS, PROPEL, GAMUDA, LITRAK AND EVEN JKR OUT SOURCE JOBS TO PROTASCO
4) SCRAPPING OF HSR AND FUTURE MRT MEAN MORE USAGE OF HIGHWAYS
5) TUN DR M LOVE OF CARS WILL SPUR MORE MANUFACTURES AND SALE OF CARS. CARS NEED ROADS TO DRIVE ON.
6) ECOMMERCE WILL ENCOURAGE MORE USE OF LOGISTIC TRANSPORT LIKE LORRIES AND VANS. ADDING MORE WEAR AND TEAR FOR ROADS AND HIGHWAYS
7) ALL THE BAD NEWS ABOUT CKP AND HIS SON ARE ALREADY REFLECTED IN THE CURRENT BOMBED OUT PRICE OF PROTASCO.
AND 11.3% DIVIDENDS PROVIDE SOLID SUPPORT.
SO THE DOWNSIDE IS LIMITED. THE DIVIDENDS KEEP THIS STOCK ATTRACTIVE.
OTHER BUSINESSES ARE EXTRA BONUS BUT THE MAIN EARNING STREAM IS FROM ROAD PAVING AND MAINTAINENCE WHICH ARE HIGHLY DEFENSIVE LIKE WATER AND ELECTRIC UTILITIES
THE POLITICAL RUMOUR AND FEAR OF CKP TRIGGER A SELL DOWN THAT IS OVERDONE.
THE BISINESS OF ROAD BUILDING AND UPKEEP CONTINUES AS LONG AS MALAYSIANS LOVE THEIR CARS. SO THERE IS A FUTURE FOR PROTASCO.
JUST LIKE CALVIN CALLED FOR A BUY ON SUPERMAX AT ONLY RM1.60 DUE TO STANLEY'S LIABILITY AND POLITICAL DISCOUNT. SEE HOW SUPERMAX FINALLY CROSSED RM3.20 FOR MORE THAN 100% UPSIDE.
EVEN KFC WAS ONCE CONTROLLED BY GANGSTERS UNTIL QSR AND IN TURN JCORP TOOK IT PRIVATE.
SO ON ITS OWN PROTASCO IS A GREAT COMPANY NOTWITHSTANDING THE PURPORTED RUMOUR OF ITS LEADERS.
TO FEARFUL WHEN OTHERS ARE GREEDILY BUYING AND TO BE GREEDY WHEN OTHERS ARE FEARFULLY SELLING
1. JAKS. WHEN JAKS WAS 40 SEN AND OTHERS ARE FEARFULLY SELLING ONLY CALVIN WAS GREEDY. JAKS ABOVE RM1.60 AND ALL TURNED GREEDY. THEN CALVIN TURNED FEARFUL
2. MALTON AT 30 SEN WHEN MALTON WAS AT 30 SEN PEOPLE SAID DITECTOR PAID HIMSELF MILLIONS WHILE GIVING PEANUT TO SHARE HOLDERS. CALVIN BOUGHT BECAUSE HE SAW PAVILION BEING BUILT AT THE FORMER BBGS GIRL SCHOOL IN BKT BINTANG
MALTON LATER UP 300%. ONLY THEN PEOPLE TURNED BULLISH BUT TOO LATE!!
3. Pm Corp at 9 sen When Pm Corp was 9 sen people said KKP sold his assets in Malaysia and bought hotels in UK.
So Calvin bought when nobody wanted.
One day Pm Corp jumped to 36 sen and up 300%
LISTEN LISTEN LISTEN!!!
TIME TO BUY IS WHEN OTHERS ARE FEARFUL
TO BE FEARFUL WHEN OTHERS ARE GREEDY. AND TO BE GREEDY WHEN OTHERS ARE FEARFUL
WHO SAID THESE WORDS? HOW COME SO CONTRADICTORY TO HUMAN NATURE?
99% of the people get greedy and buy when prices are high
99% of the people turns fearful when prices have crashed and are low.
So human Nature tells you to chase high and sell low?
No wonder that 90% of the people end up losing money in the stock market.
If Calvintan really bought in Protasco, he sure will be homeless soon. But anyway, i think he just talk cocks only, not really mean he will buy in. He just recommend holland stocks.
Calvintaneng, I am collecting Protasco at current levels since the company has earlier this year secured several road maintenance and repair agreements. Moreover this company in the past has been giving out very decent dividends quite consistently and I hope the company will be able to continue to do so. Sometimes it is guts instinct just like recently when I bought YTLpower at below 80sen. Hopefully I am right with respect to Protasco. 27/06/2018 23:58
calvintaneng KINGV
V Good
How come we think alike. I bought YTL Power at Rm1.20. When YTL Power crashed to 75 sen i bought more to average down my cost.
And you are right on Protasco. I think Sifu Dr Neoh of Dynaquest first recommended Protasco because its its great dividend payout.
Now due to people spreading fear there is a sell down.
And in times of fear when prices are fearfully sold down it opens up an opportunity to buy cheap.
To be fearful when others are greedily buying Hengyuan at Rm19 or chasing Masteel at Rm1.90. And to be greedy when others are fearfully selling Protasco at 48 sen
See the dead end if Sticky HIV canser like CKP still there. Diff between research house and street fighter research. Good try but no thanks. I check your “value call”. Here is the ending.
MPCorp asset 1billion. Buy call from 30c now 3c and delisted.
Protasco asset 300mil minus debt. Buy call 1.60 by investment bank. Now 48c. Calvin starts buy call. See you at 5c delisting.
MPCorp same as Protasco. Crook problem, asset is fine. Will end like crook. My 2c bonus for you all.
Go for good management company. Plenty below 50% asset value.
Hahahaha. Calvin MPCorp just send few ikan bilis flush down toilet hole and stucked. So must find a new toilet.
davidkkw79 If Calvintan really bought in Protasco, he sure will be homeless soon. But anyway, i think he just talk cocks only, not really mean he will buy in. He just recommend holland stocks. 28/06/2018 10:48
Hahaha. Childish. Same category basket. Lower NTA discount: AZRB, MITRA, YTLLand, SEACERA, exclude Protasco.
Protasco NTA will be 30c when sheeet hits ceiling. Insider director said so since price 90c. 1 director resigned. Oppsi. “Retired” wor. Thats why insiders keep selling back to crook CKP.
nuder the new government austerity budget, road maintenance job will be reduce, and no sign of recover in property industry, the Bangi development will continue making loss.....this is the risk.
this CKP likes dividend, he go until the extend to load money to pay dividend....
another challenge is the Putrajaya PRIMA development phase 2 and 3 phase which is under construction....all are under Najib, Najib even appear to hand over key when phase 1 VP, CKP damn proud, these projects are causing company bloody due to collection and delay issue...given that Najib no longer in power, not sure what would be next...more loss i reckon
nuder the new government austerity budget, road maintenance job will be reduce, and no sign of recover in property industry, the Bangi development will continue making loss.....this is the risk.
this CKP likes dividend, he go until the extend to loan money to pay dividend....
another challenge is the Putrajaya PRIMA development phase 2 and 3 phase which is under construction....all are under Najib, Najib even appear to hand over key when phase 1 VP, CKP damn proud, these projects are causing company bloody due to collection and delay issue...given that Najib no longer in power, not sure what would be next...more loss i reckon
u gonna bring many people to Holland la. I know the co owner himself, after election this co gg liao, no future ahead, will burn through cash balances fast after this. Machinery all too old and worth nothing. can delist in a few years.
Road bumpy ahead. Thats all we know. The ppa1m rubbish killed the company. CKP secret taking big salary millions per year we all know. He orders not to pay labors and cheat in over time pays we also know. His directors all bribed and keep quite let him steal money, we also know. We down here cannot do anything.
Spend so much on Najib we heard and now loss. Job getting less and claims not sure. I review or freeze after new government people hungry, sure will be hungry, we also dont know how much bank will lend to CKP to keep paying dividend to himself. Nothing benefit the staff and we don’t care.
Any investor if look for dividend AND share price stays “higher” than dividend discount, good luck. Our directors all got con at high price. Salary all gone, share value also gone, dividend cannot cover even 20% of capital loss.
That’s the whole issue. The CKP greedy guy. We no eye see.
Your sifu Buffet is taking “preference shares”. If got criminal like CKP, Buffet “take back principle money” and don’t exercise Pref Shares. Safe.
CKP let you buy fake shares and share price goes down more than dividend. Borrow so much, matter of years if he still there sure close shop. If he issue Pref Shares maybe can bet 50/50. If shares, then I better bet World Cup. Higher chances.
calvintaneng REMEMBER THESE 2 SIFU
WARREN BUFFET BOUGHT INTO PREFERENCE SHARES OF GOLDMAN SACHS DURING SUBPRIME CRISIS BECAUSE HE WAS ASSURED 10% DIVIDEND
NOW PROTASCO IS GIVING 11.3% YIELD
JOHN MAYNARD KEYNES SURVIDED THE GREAT DEPRESSION BY BUYING DIVIDEND PAYING RECESSION PROOF STOCKS
AND ROADS AND ROAD MAINTAINANCE ARE RECESSION PROOF 28/06/2018 14:21
More advance analysis for you calvin guy. This is what CKP did.
Past record: Dividend 2014-2018 say total 30c Share drop 80c (Tips: look at loan and cash flow. Borrow to pay, you also can sit his place.)
Future: IF dividend still 5c per year. AND income -ve cash flow AND CKP still stealing millions salary AND CKP sons and directors still stealing millions salary AND still borrow more bank to pay dividend ASSUME new gov don’t go after road project stolen money. Share price (5 yrs under new gov) 2019 maybe 48 - 5c = 43c if lucky 2020 maybe 43c - 5c = 38c if lucky ....... 2024 maybe 23c left.
If: ASSUME new gov hungry take back 200mil or 300mil stolen money from Protasco road maintenance, maybe if lucky still got 5c left.
So “dividend” if lucky maybe you get back 23c. If not lucky get back 5c.
The TP of 5c is very achievable. Hopefully can short sell. “Chances” is higher to profit from short. Calvin, you go lobby new gov to allow short sale. Higher chance won’t bring people to Holland.
How come got tunnel vision? You only see Mp Corp? Got see
Jaks at 40 sen? Prestar at 46 sen? Padini at Rm1.60? Supermax at Rm1.60? Gsb at 9 sen? Opcom at 35 sen? Tmakmur at Rm1.38? TheStore at Rn2 50? Wangzng at 75 sen? Super Enterprize at rm1.25? Kulim at Rm2.50? Waseong at 72 sen? Pm Corp at 7 sen(ex cash 8 sen) Pohuat at 35 sen (after bonus)?
You can see like a mole or you can see like an eagle
If 1MDB have taken money from Protasco --- then let shareholders sue 1MDB and get all the monies back
Another good news are
1) Without GST all Car Com getting roaring sales. So Protasco service will be needed
2) Tun Dr M might let Malaysia Jv with Indonesia to revive "THE ASEAN CAR" So many more cars on the road means more business for road maintainance for Protasco
In short. You meant you don’t need to pay CKP 4 million ringgit a year pay package to borrow money and pays another 6 million ringgit dividend to himself. Toilet cleaner also can do same job.
Clear criminal trail. SC need criminal expert, not accountants to put these people behind bar. Lolol.
RoadcareStaff More advance analysis for you calvin guy. This is what CKP did.
Past record: Dividend 2014-2018 say total 30c Share drop 80c (Tips: look at loan and cash flow. Borrow to pay, you also can sit his place.)
Future: IF dividend still 5c per year. AND income -ve cash flow AND CKP still stealing millions salary AND CKP sons and directors still stealing millions salary AND still borrow more bank to pay dividend ASSUME new gov don’t go after road project stolen money. Share price (5 yrs under new gov) 2019 maybe 48 - 5c = 43c if lucky 2020 maybe 43c - 5c = 38c if lucky ....... 2024 maybe 23c left.
Chong ket pen dead already? Oh not yet. Then protasco gone case.
This new post is factual and speaks for itself. You buy some shares and report to SPRM save your country ya. Everyone will support you when the culprit put behind bar replaced by you.
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....
calvintaneng
56,552 posts
Posted by calvintaneng > 2018-06-28 01:18 | Report Abuse
Dividend provides a 'floor' for shares during bear markets. DR NEOH SOON KEAN
Stock markets of the world, especially the Malaysian/Singaporean market is not readily predictable. They can collapse so easily into a 'bear pit' with little warning. If we wished to protect our hard earned capital, we must be defensive in our investment approach. One of the best defense is to buy shares with reasonable dividend yield (i.e. a yield of between 1/2 of deposit interest rate). If we buy a share because it pays a reasonable dividend, our loss is likely to be small even during periods of sharp market decline.
For example, we can buy a share which pays 30 cents dividend at Rm5.00 a share and this gives us a dividend yield of 6 per cent. If the share market goes into a sharp decline, the amount this share can fall to is limited by the fact that it pays a 30 cents dividend. If the price is to fall to as low as Rm3.00, it will be giving a dividend yield of 10 per cent which is about as good as what one can get from fixed deposit but with the additional opportunity to capital gain thrown in.
Most people can see that at that price, the share is probably a good bargain and it is therefore unlikely to fall any lower. It has been my experience that with the exception of mining counters, a dividend yield of 12 per cent seems to be the floor below which most stocks will not drop. In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more.