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I think this is real as they sitting with around 300+m of cash! If they are able to generate positive free cash flow it is rational to give out 200m as dividend ! They still have 100m left for m&a or capex.
AirAsia was in the news a few years back when their share value around MYR3.4, I think. AirAsia offer cash dividend MYR1 per share. TheEdge asked that this move will reduce AirAsia share price and affects minority shareholders. Tony told TheEdge that AirAsia uses percedings from selling leased aircraft at that time which already approved by their board of directors. He wants to give back some to us.
AirAsia share price was adjusted after the ex-date. There were many issues popped up after that.
When dividend is payout, it doesnt matter from where the stock owner get funds for this dividend, this dividend will increase their cost in their balance sheet. If they unable to make gains from this dividend payout, this will affects their earning this year. Earning getting lower. share value will gets diluted.
The ones who will benefit from this dividend exercise are their major shareholders.
The price will adjusted immediately after ex-date. I hate AirAsia so much, I dont even use fly with AirAsia or buys anything from Tony Fernandes.
thanks for sharing.
AA drop after high dividend, because of the bad QR ever before ex date.
of course never come back, becuz at the time world start facing flu pendamic. also 2018 economy bad.whatever you have the point, if company can't gain, may effect share price.
but maybe company know too, that's why they have contract
I have been to Muhibbah and Favco in 2010's. Company send me to make sure equipment they ordered as per purchase order.
1 Look at Favco yearly financial performance. Revenue around MYR 550mil to MYR600mil But net profit only 10%.
2 Share price since early this year around 2-2.30. On the 5th, Favco closing price at MYR2.58.
The next day, Favco opens with gap up to MYR3.06. 56sen gap up. Walawei!! Never been in Top 30 Gainers before.
This move is like fishing. Give a good bait, Jaws also take the bait.
Everyone works in Muhibbah makes money EXCEPT retail investors. Favco didn't make any progress at all. Be advised.
market now is high roe business model, no more high nta like 10years before. this kind of company is high nta sure low margin. usually 10%+- not more than 15%
good thing is, other new company hard to atk, becuz they need loan alot for nta when start up and get abit margin only. seldom ppl will take this risk. becuz of the economy moat.
usually only new technology can break the economy moat.
