Based on 16/8/13 closing price of RM4.20, The 'real' price = 4.20*(46/45)*(15/14)+(0.04+0.08+0.065+0.05+0.06+0.08+0.08+0.03+0.06+0.04+0.08+0.08+0.08+0.30) = RM5.725
Yes, this is a main concern. However, the 40 to 45 sen special dividend is equivalent to 1.5 year of dividends, it should compensate for the earnings dilution.
After that, we should see how they propose to distribute the remaining STM Trust shares after secondary listing. Are they going to distribute all of them & privatise BjToto with SCR (Selective Capital Repayment), ie with repayment in STM Trust shares + cash? Or are they just distribute STM Trust & maintain listing status of BjToto (may need to inject new assets later)?
Personally I would prefer SCR & holding STM Trust directly since a Business Trust can pay dividends with its cash flow & hence should have a higher dividend yield. If they maintain the listing status of BjToto after distributing STM Trust, I may sell BjToto & invest directly in STM Trust.
It's a defensive stock, also recession proof (when poor, people want to gamble more :D).
Beside affected by broad market sentiment, it's also affected by government 2014 Budget to be announced in Oct. Usually gaming stocks drop before Budget on worries that gaming tax will increase. However, if gov increase tax on NFO, legal operators will lower the winning prices & then more gamblers will switch to illegal operators & gov may ends up receiving less tax, hence not very likely.
BJtoto is the lifeline for Vincent's 2 companies namely BJcorp and Bjland. Without BJtoto, the 2 other companies would have disappeared a long time ago. Bjtoto as compare to Magnum offered consistent earnings.
Vincent would not have his English football club, Beijing Great Mall and Jeju Island resorts without Bjtoto consistent earnings for the past few decades.
Possibly,if I am not wrong, JR Owen Ltd, UK listed co taken over by BJtoto's Phillipines Sub. JR Owen is in luxury car sales in the UK. Berjaya Phillipines is also involved in Mazda car sales in the said country. Look's like BJtoto will eventually be involved in Global auto business as potential is huge and BJtoto can afford the high capex that comes with the business.
14000 ord shares get unit trust of 29400, anticipated yield of unit trust at 6.7% or hopefully same % distribution, much better than FD. Possible value of RM1.20 per unit. BJtoto will retain 2 billion unit trust as investment. In additional it has properties in Times square and business in Berjaya Phillipines they are gaming,motor vehicles business including UK and Redtone shares. Going forward BJtoto anticipated divi could be around 16 sen or 4 sen per quarter.
Jan'14 or Feb'14 target date STM dual listing in Bursa Malaysia after their listing in SGX expected end Oct'13 or early Nov. Each shareholder can get 2.1 STM for each BJToto held.
Secondary listing on Bursa Malaysia is expected to be completed by 3QCY14.
See attachment of announcement on proposed dividend-in-specie on 19/9/13, page 9, sect 10, ESTIMATED TIMEFRAME FOR APPLICATIONS TO AUTHORITIES AND COMPLETION: "Barring unforeseen circumstances, the Proposals are expected to be completed by the third (3rd) quarter of 2014."
huh, listing in singapore, so do those of us holding bjtoto need to have account in singapore ? (this company unclear details will scare some apek ama to sell what they hold)
According to people in BJtoto, upon secondary listing in KLSE that BJtoto will distribute the business trust units so that it will appear in your CDS accounts. In the mean time 80% of the units will be retained by BJtoto and hopefully dividends will still be ongoing via BJtoto on listing in Singapore till distribution to shareholders.
Under the proposed revisions announced on 19/9/13, BjToto holding of STM-Trust will be 86.54% to 87.58% after primary listing in S'pore.
See pg 3 of the announcement: "With the Proposed Revisions, the BToto Group‟s interest in STM via its unitholding in STM-Trust would be diluted from 100% to 87.58% and in the event of full exercise of the Over-allotment Option, the BToto Group‟s interest in STM via its unitholding in STM-Trust would be further diluted to 86.54%, instead of 79.54% as originally intended upon completion of the Proposed Listing."
Berjaya Sports Toto Bhd (BToto) is on track to list its subsidiary, Sports Toto Malaysia Sdn Bhd, as a business trust on the Singapore Stock Exchange (SGX) at the end of next month. “All approvals have been obtained,” BToto executive director Freddie Pang said in an email reply to StarBizWeek.
The dividend-in-specie can only take place once the company has obtained approvals from the Securities Commission and Bursa for a secondary listing on the main market here. “It can only happen after the initial six-month moratorium period. “Assuming a listing on the SGX at end-November, this will take us to mid-2014 for the secondary listing to happen,” Pang said.
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....
jpleow
247 posts
Posted by jpleow > 2013-08-18 17:32 | Report Abuse
For a high dividend yield stock like BjToto, you need to consider the dividends given in the past when looking at the current price.
Usually the price goes up before the dividends Ex then it will be adjusted down for the dividends given.
I just like to give you a clue of what is the 'real' price of BjToto after you add back all the previous dividends:
Let’s consider dividends given in about 4 years:
Ex date, net divd (RM) or share divd:
16/7/13, 0.04
12/7/13, 0.08
15/1/13, 1:45 share divd
5/10/12, 0.065
19/7/12, 0.05
9/4/12, 0.06
4/1/12, 0.08
6/10/11, 0.08
8/7/11, 0.03
21/4/11, 0.06
14/1/11, 0.04
6/10/10, 0.08
2/7/10, 0.08
13/7/09, 0.11 + 0.19 + 1:14 share divd
Based on 16/8/13 closing price of RM4.20,
The 'real' price =
4.20*(46/45)*(15/14)+(0.04+0.08+0.065+0.05+0.06+0.08+0.08+0.03+0.06+0.04+0.08+0.08+0.08+0.30) = RM5.725