An excellent set of results. Cash continues pouring in. Net cash is now RM 56m. EBITDA RM15.4m. After, interest, tax and capex, the net cash inflow is still at a very high RM7m to RM8m.
Dividends last year only 0.5 sen or around RM6m. Management should at the very least double it to 1 sen or RM 13m. Even for the controlling shareholders, a high dividend payout makes more sense, tax-wise since most of the tax free dividends will go back to them which is better than the taxable RM4m that they paid themselves.
The management of RGB should do the following: a) Continue debt repayment b) Increase cash and cash equivalent c) Increase profitability c) Share consolidation (10:1)
Then I am sure their share will move up. The current problem with them is too many outstanding share. For the coming quarter they should initiate share buyback instead of dividend payment. After having enough number of share in hand then do consolidation.
singkalin, u mari sini cari makan ke? :-D MIC President offer to tender resign letter if hudud implemented, what is your comment about this latest development? :-D up up up...rgb... :-D :-D :-D
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....
Mohd Fahmi Bin Jaes
29,156 posts
Posted by Mohd Fahmi Bin Jaes > 2016-05-26 14:13 |
Post removed.Why?