The movement of MPHB is highly disappointing. It was UOB top pick for 2014, the fundamental value is intact plus large sum of cash. There is no reason for the price to be worst of then it was prior the corporate exercise. There is no logic here.
If the company has good profit but did not declare dividend twice, realise substantial premium from the sale of a core business, has assets which are undervalue, there is no reason for it to be performing as such. Its intrinsic fair value should be at least RM3 but the current share price is far from it. The management should make a stand if they are going to distribute the proceeds back to shareholders.
1.you will get your dividend when mphb no need to comply with BNM rule (maybe some special dividend from the land sale + last year 5cent that dint approve by BNM)
2.but they cant give out all the 3xx million due in case of the put option (3xx million will be trap until 2019)
I am not asking MPHB to distrubute RM300 million in cash but utilise some amount of proceeds to reward shareholders and the rest use to acquire new business or investment. Like how Jobstreet, Abric etc has done. Once call option is executed, put option requirement cease to be effective. So the RM300 million is not trap till 2019 as you stated. If RM300 over million is stuck, MPHB will not have any funds to acquire new businesses and definitely will fall into PN17. So this statement is inaccurate.
Anyhow, this counter is severely undervalued and once they make acquistion of the right business in the appropriate sector moving forward, the share price will shoot all the way up. Whoever has the funds to hold can hold.
You all are right. A huge disappointment. Instead of rewarding shareholders, they fail to utilise a portion of their huge profits from the proceeds of sale to take care of interests of shareholders. Very disapppointing indeed. There is also no support of the mother share by the company.
the management is kind of "not so investor-friendly", holding so much cash on their pocket. In other words, no prospect of growth. Since the liquidity of this stock is so low with large percentage hold by them, I would see it will fall to a level which u won't believe. No point holding this type of stock with a hope it will come back strongly.. already stated by them, the money is not going to reward to shareholder. I would rather play other stock. Even the stock fall to RM1, there is no impact to their main shareholder. A good company must take care of shareholder and give briefing on the company growth plan.
very disappointed meeting as the management did not share any business plan to shareholders and taichi the Questions. really thinking want to vote against to the directors fees!!!
hi Hunter, any body ask about dividend distribute? or how to allocate fund after sell 49% share insurance. use for property investment? what is the different property investment & property development why BNM lastime (Dec 2013) reject 5sen dividen pay?
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sharedirector
128 posts
Posted by sharedirector > 2015-03-20 11:44 | Report Abuse
drop further...