After the dividend payout, the company is still cash rich with RM1.00 per share plus other assets, so it will trade around RM1.00 to RM1.30 easily after ex dividend. One good example of this kind of corporate exercise is ADVENTA.
Adventa is different as it is in a high-growth industry. It paid out more, left behind less, and yet able to grow so strongly in a related field.
ILB remains in logistic industry and Dubai's operation remains unconvincing. ILB's best value in the form of properties in China has just been realised. To me, ILB has become a sell. I went into ILB in 2011 at 82sen, and sale of assets as hoped for just materialised as expected. No complaint.
how much the dividend paid out will decide how much the share price will drop. based on my calculation, it will simply back to 0.8-0.9. that's why some of the investors scared that the price will not climb back in short period of time. it's definitely not for day traders, but for long-term holders
MYR2.42 FV, with potential upside. ILB’s value is not tied to earnings potential from its remaining assets. Instead, it is based on the disposal of its investments and the potentially huge cash pile to be received in due course. Assuming ILB pays out 100% of its net gain on the disposal of IL Shenzhen and IL Henan, based on our SOTP calculation, the company should worth MYR2.42 per share
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....
mikekong55
4,805 posts
Posted by mikekong55 > 2013-11-04 20:14 | Report Abuse
I thought is nett dividend no 25% tax