If with the current changes in the ownership of Bjauto with local management, more dividend payment is expected...epf sure invest more...since epf want to ensure good dividend payout each year
ya lorrrr...but EPF and Vincent Tan way of manipulating the shares will scare retailers away maaaa.......must remember....market depends on retailers to push up the price worrrr.....ha...ha...ha
EPF wants to buy cheap from ikan bilis....so they slowly accumulate the shares....restrict up trend...otherwise, dividend return per share invested will not be high
Yen is strengthening by the inaction of BOJ, This counter is selling mazda, which some parts need to procure from Japan, might be affecting its bottomline
BERJAYA AUTO - A dividend gem Author: Piggybank | Publish date: Mon, 25 Apr 2016, 10:18 AM
BERJAYA AUTO fits the following criteria. The senior management will owns 32% of the company following the disposal by Berjaya Corp. Free cash flow grew from RM34m to RM117m in 2016. Net cash RM293m, no debt, pays 32% to 46% of profits in dividends over the 2 years as the company was IPOed in 2013, ROE of 51% for a boring car distributor business.
When evaluating small cap dividend-paying stocks, I look for the following attributes:
Low debt or preferably no debt. Diversified, larger firms can get away with having more financial leverage and can typically get better rates on their borrowings, whereas smaller companies tend to be more cyclical or more reliant on one product line, so a rock-solid balance sheet is a must-have for a smaller company that pays a dividend. An invested leadership team. With small caps, I like to see insiders own at least 5% of the company. Having some skin in the game should motivate management to allocate capital with a long-term ownership perspective in mind. Steady free cash flow generation. This is always necessary when evaluating dividend-paying stocks as dividends must ultimately be funded by free cash flow in order to be sustainable. It’s a particularly good sign when a small company is able to generate free cash flow across the business cycle. Dominant in a profitable market niche. Small companies with dominant shares of niche markets may be less likely to attract the attention of large competitors. That’s because the niche could be too small to make a difference for the large competitors. If the niche is attractive enough, the larger companies are more likely to simply acquire the dominant player instead of entering the market themselves. Operates in a decidedly boring industry. I like to see a small company operating in an industry that’s unlikely to attract investor attention – e.g. industrial parts, safety equipment, and food processing equipment. The longer the business can fly under investors’ radars and not be of interest to potential competitors, the better. A payout ratio below 50%. Small companies with a long growth runway should be reinvesting at least half their cash back into the business to fuel long-term dividend growth. A firm that is paying out much more than 50% of its earnings is likely in the mature or declining stage of its lifecycle. Researching smaller cap dividend-paying stocks requires a bit more legwork than researching large caps where information and analysis is more plentiful. If you’re looking for firms with strong capital return potential, however, it can be a good place for dividend-minded individual investors to spend their researching time.
KUALA LUMPUR : Maybank IB Research has upped its fair value for Berjaya Auto Bhd (BAuto) to RM2.60 from RM2.40 previously due to potential catalysts in the near term that are in favor or the company.
In a note today, the research house said that the ongoing management buyout exercise involving BAuto bodes well for the group's prospects as it reflects the management's confidence in its outlook.
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....
Skyangelic
40 posts
Posted by Skyangelic > 2016-04-22 16:07 | Report Abuse
bjauto when only you will go up ToT