that's because maybank is not a high growth counter.. you need to retain your earnings in order to grow, if you give out more dividends, u have less retained earnings to fund your expansion.
Ok thanks Voon Soon Yoong for your comments. I don't know whether you have used AEONCR credit card before, i have and they didn't send me my statement for 3 months eventhough i've been calling in every month and no response for their part to correct this minor issue. Ended up canceling their card and when i talked to some staff in (Jusco) about this, they said many customers have complained too about their services. Their service is really bad in that sense. So that's why i'm wondering how come their share can be so overpriced with this kind of services.
Overprice? AEOCR not only main in credit card but contributor from express loan they given like for ppl who wanna buy gadget or household application... The process n requirement quite easy...
Luckily didn't go into this counter... really yoyo up and down like nobody's business.... poor thing to all those that buy at the high... so unstable the pricing.. Still think this is an overpriced counter if really good then it shouldn't fluctuate so much.
The number of shares in the market is only 144m. Most of the shares are held by fund managers and directors themselves. It is easy to push the price up. Remember that ACS M'sia has 20% share of ACS India. This counter has to grow and to do that is by way of Rights and Bonus issue.I remember Pulic Bank chairman (Datuk THP) once said : " If you had bought one lot of PBB share in early 1970 and keep until now, you would have been a millionaire.". This is a good share. Grow with the company.
aeoncr is a high growth stock, pbbank grow slower but steady, both of them are good stocks. Bt myself opinion, in the future few years, aeoncr can give us higher return than pbbank.
It is little possible to reach RM10.00. At this moment, the share price of AEOCR drops drastically due to 2 main reasons: 1) Market panic 2) Fund manager Aberden is selling off AEONCR almost everyday as a part of their portfolio management exercise. See http://www.bursamalaysia.com/market/listed-companies/company-announcements/1388153 as an example. View more from this Bursa webpage. This was happen in Jan 2013 and the share price drop from RM13.50 down to RM10.40 with a month. History repeat itself, but this time market panic add salt to it.
Therefore, it is advised to sell off to keep your gain and buy when the Aberden stop selling and the market recovering. Monitor the Aberdeen sale from the above webpage.
Aberden has been selling off AEONCR shares every 3 to 4 months as part of their portfolio management exercise when the AEONCR share price went up and hitting their portfolio alarm. Look like selling campaigns were more often than my hometown mini market sales. Now Aberdeen is holding less than 9 million shares already as compared to the 9 million++ shares in Jan 2013. Hope these info help everybody. Happy trading and be blessed.
Alternatively, for info --- Puncak is announcing their lovely 2nd quarter financial result within this week ( by end Aug 2013 ). Expected huge contribution from the oil & gas business. Also awaiting good news from their newly bough construction company. These are honey addition to the water deal to be closed soon. Without the water deal, it's target price is RM4.02... With the water deal, will be more amazed.... Watch up!!!
I see many parties concern talking about AEONCR, and little of you know about this news, let’s share ---- According to the latest AEONCR AGM in June 2013 at Istana Hotel, KL, despite the good news on profits every quarter, there was a bad news as well. Probably, AEONCR may need to call for right issue!!!!
What is this????? As explained by the Executive Director of AEONCR, appeared that the minimum 16% capital adequacy ratio(CAR) imposed by Bank Negara was NOT just a rumour in the market but just as real as diamond.
In order to address this issue, AEONCR have few options as follows:- 1) Option 1 : To call for right issue to raise sufficient fund from the shareholders. The formula will be about 1:10. If this option is adopted, all shareholders will have to find fund to invest in the right issue, or sell some existing shares in order to get fund.
2) Option 2 : AEONCR will appeal to Bank Negara to reduce the CAR to 8% on par with banks. If the appeal is successful, then AEONCR does not need to call for right issue.
3) Option 3: If Bank Negara still insists on 16% CAR, AEONCR may appeal to Bank Negara to just consider credit card portion for the 16% CAR as the reason given by Bank Negara earlier pertaining to the imposing 16% CAR instead of 8% is due to credit card loan carries higher risk. If the appeal is successful, then AEONCR does not need to call for right issue.
4) Option 4 : AEONCR will set up a fully owned subsidiary and transfer all credit card business to this subsidiary. As credit card loan is still very small, CAR for this subsidiary will be at 96%, more than enough to meet the min 16% requirement set by Bank Negara. If this option is successfully implemented, then AEONCR does not need to call for right issue.
Therefore, all lovely shareholders, be prepared for the worst case scenario of Bank Negara going for Option 1 finally. It is VERY IMPORTANT for all shareholders to standby some spare money (about 10% of your total shares in AEONCR ) to prepare for this Option 1. It is not surprised to me that AEONCR share price may drop about 10% after announcing this worst case scenario ( if happen ) as many shareholders may sell off part of their shares to raise fund.
This scenario will add salt to the AEONCR share price in addition to the impact of the recent bearish market and Aberdeen’s quarterly sell off under their portfolio management. See my sharing on 28-8-13. I hope this information helps all of you. You decide…
There is no latest news on this issue from AEONCR. Let’s see how….
Kevin Gibb: Thanks for posting. As I see it the rights issue if called may be small as expected by you 1:10. Not many here hold 10 lots. If 1:10 it may be in the region of rm1500. Aeon Cr could sweeten it with a BONUS???????. However all this is to strengthen the Co. Most important is good management and good shareholder return (Dividend). Wait for end Sept to see Aeon's plans when results will be announced
The company is strong, they no need capital to strengthen. but right issue is to raise capital in order to abide the government rule on capital adequacy ratio(CAR). The next financial statement, i would expect not as good as the previous quarter due to government effort to reduce family debt. see how it goes. This stock is becoming more liquid after the 1:5 split last year, with more shares in the market. You can see the selling off of the stock in bigger volume few weeks ago when the US announcement the QE3 withdrawal in phases. Good luck.
I wonder what make you think its Q2 result would be poorer than Q1? I would think the results would be as good as the Q1 if not better. Its personal loan policy was much more conservative than the government ruling of 10 years tenure limit, so the government ruling should not affects its performance. I do agree with you the likelihoood of potential turbulence owing to the low liquidity of this particular stock
Not all rights issue are bad. There have been some counters that rally after the RI exercise because of the company manage to put the new funds to good use. You need to see the reason they call for the exercise.
I will take option (1) as a good chance to increase my no of shares. My cost is quite low :)
I don't expect the new personal loan ruling to hit AeonCr significantly. Their period of repayment is ~5 years.
I do agree with you that RI may not be a bad thing, however at such timing when panic is still very much been felt all over the market, it is bad. Price will drop the moment the news is released. Well for the Q2 announcement, I expect no adverse impact from the new ruling unlike MBSB whose loans were mostly exceeding 10 years in tenure
Don't forgot 70 to 80 % of loans given out by MBSB are to civil servants. There is also deduction from source i.e. from their salary and remitted to Angksa direct & channeled to MBSB. So MBSB has a slight advantage when receiving Loan repayments and bad loans will be less
AEONCR not even publish its financial statement on Bursa.... Supposed to publish on 20-9-13....What is the matter here? Almost one week already... I feel fishy here...
Pursuant to paragraph 9.22(1) of the Listing Requirements ("LR"), a listed issuer must announce to the Exchange, an interim financial report that is prepared on a quarterly basis ("quarterly report"), as soon as the figures have been approved by the board of directors of the listed issuer, and in any event not later than 2 months after the end of each quarter of a financial year. Since the end of 2nd quarter was 20 August 2013, the due date for the Company to announce its 2nd quarter results should be 20 October 2013. I hope the result is good although they normally announced their result one month after each quarter of financial year. This quarter they do it "a bit late". Looking forward...
Funny thing that big shots disposed chunks of shares in August and till now no movement of shares trading..funny or fishy? No doubt AEONCR is one of the best div yield counters
I guess there is something going on now that makes them delaying the announcement. For information, AEONCR has to settle it's problem on capital adequacy ratio (CAR). See my previous comments on the various options. If they have to exercise Right Issue of 10:1, the share price will be diluted 10%.
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....
hw0706
835 posts
Posted by hw0706 > 2013-04-25 16:47 | Report Abuse
if the NPL raise than this is the 1st counter shall sell.