Comments for Trading Malaysia http://tradingmalaysia.com Asset Management and Trading Education Thu, 19 Nov 2009 01:27:15 -0700 hourly 1 Comment on Maxis IPO Price set to $4.75 by dirtydog http://tradingmalaysia.com/?p=961&cpage=1#comment-433 dirtydog Thu, 19 Nov 2009 01:27:15 +0000 http://tradingmalaysia.com/?p=961#comment-433 I'm not disagreeing that yields may increase in the future. In my 9 November post I stated: "I would also expect Maxis’s yield to increase over time at a faster rate compared to standard utilities...." But that still doesn't change the fact that based on the 6 months net income figure projected into the current year end, unless there is a huge bump up in revenues in the second half or profit margins increase substantially the yield is estimated to stand at around 4.8%. I’m not disagreeing that yields may increase in the future. In my 9 November post I stated:

“I would also expect Maxis’s yield to increase over time at a faster rate compared to standard utilities….”

But that still doesn’t change the fact that based on the 6 months net income figure projected into the current year end, unless there is a huge bump up in revenues in the second half or profit margins increase substantially the yield is estimated to stand at around 4.8%.

]]> Comment on Maxis IPO Price set to $4.75 by Tim http://tradingmalaysia.com/?p=961&cpage=1#comment-432 Tim Wed, 18 Nov 2009 09:09:20 +0000 http://tradingmalaysia.com/?p=961#comment-432 If you were to make your decisions based on the guided minimum payout ratio would mean you are missing out on alot of upside considering most mature telcos, namely Digi have been making payouts way above their guidance of 50% steadily (even reaching levels above 100% in previous years). The point I brought up about major shareholders objectives being in line with minority also paints a clearer picture with regard to the possible future payouts by Maxis. Why would they pay 75% leaving the other 25% as storage in the listed co when they desperately need monies to fund investments overseas? At RM4.75 valuations, everyone must be crazy not to want a piece of Maxis not yet even considering the fact that UT Group has a track record of returning value to shareholders. If you were to make your decisions based on the guided minimum payout ratio would mean you are missing out on alot of upside considering most mature telcos, namely Digi have been making payouts way above their guidance of 50% steadily (even reaching levels above 100% in previous years). The point I brought up about major shareholders objectives being in line with minority also paints a clearer picture with regard to the possible future payouts by Maxis. Why would they pay 75% leaving the other 25% as storage in the listed co when they desperately need monies to fund investments overseas? At RM4.75 valuations, everyone must be crazy not to want a piece of Maxis not yet even considering the fact that UT Group has a track record of returning value to shareholders.

]]> Comment on Maxis IPO Price set to $4.75 by dirtydog http://tradingmalaysia.com/?p=961&cpage=1#comment-431 dirtydog Tue, 17 Nov 2009 12:47:45 +0000 http://tradingmalaysia.com/?p=961#comment-431 Tim - my earlier post shows how I get the numbers. According to Maxis - the 75% payout is based on this year's projected net income - not just projected revenue minus capex (which is what I think you are assuming). If you use NI figures then even for such a high rate of distribution, available amounts to actually distribute are not as much as you would expect. The Edge also came up with similar numbers (see link below). Digi is currently providing a higher yield (8+%), but that is because its net income is higher, and is one of the reasons why Maxis raised their distribution percentage to 75% compared to Digi's 50%, and reduced their IPO price. http://www.theedgemalaysia.com/features/151940-cover-story-maxis-dividend-play-to-keep-digi-tm-on-their-toes.html Tim – my earlier post shows how I get the numbers. According to Maxis – the 75% payout is based on this year’s projected net income – not just projected revenue minus capex (which is what I think you are assuming). If you use NI figures then even for such a high rate of distribution, available amounts to actually distribute are not as much as you would expect. The Edge also came up with similar numbers (see link below). Digi is currently providing a higher yield (8+%), but that is because its net income is higher, and is one of the reasons why Maxis raised their distribution percentage to 75% compared to Digi’s 50%, and reduced their IPO price.

http://www.theedgemalaysia.com/features/151940-cover-story-maxis-dividend-play-to-keep-digi-tm-on-their-toes.html

]]> Comment on Maxis IPO Price set to $4.75 by Tim http://tradingmalaysia.com/?p=961&cpage=1#comment-430 Tim Tue, 17 Nov 2009 03:32:44 +0000 http://tradingmalaysia.com/?p=961#comment-430 You obviously do not know what you are talking about. How did you even derive a yield at 4+%? assuming a dividend payout of 75%? If you have been following mature telco sectors i.e. Digi, you would know that they all payout maximum dividends possible after minimal capex requirements. They even have a structure that supports the minority shareholders as they are now in line with the major shareholders intentions (e.g. distributing maximum dividends possible to fund the shareholder's overseas expansions in India and Indonesia) How did I even stumble across such a crappy blog. I wonder. You obviously do not know what you are talking about. How did you even derive a yield at 4+%? assuming a dividend payout of 75%? If you have been following mature telco sectors i.e. Digi, you would know that they all payout maximum dividends possible after minimal capex requirements. They even have a structure that supports the minority shareholders as they are now in line with the major shareholders intentions (e.g. distributing maximum dividends possible to fund the shareholder’s overseas expansions in India and Indonesia)

How did I even stumble across such a crappy blog. I wonder.

]]> Comment on Maxis: IPO by Maxis IPO Price set to $4.75 | Trading Malaysia http://tradingmalaysia.com/?p=955&cpage=1#comment-428 Maxis IPO Price set to $4.75 | Trading Malaysia Wed, 11 Nov 2009 03:35:52 +0000 http://tradingmalaysia.com/?p=955#comment-428 [...] which increases projected yields to around 4.8% from 4.29%, based on calculations in my previous post in an effort to make its numbers look more attractive. I am not sure whether or not this is below [...] [...] which increases projected yields to around 4.8% from 4.29%, based on calculations in my previous post in an effort to make its numbers look more attractive. I am not sure whether or not this is below [...]

]]> Comment on Australia’s Rate Hike Implications by Agricultural Commodities | Trading Malaysia http://tradingmalaysia.com/?p=870&cpage=1#comment-286 Agricultural Commodities | Trading Malaysia Wed, 14 Oct 2009 05:16:34 +0000 http://tradingmalaysia.com/?p=870#comment-286 [...] this post I alluded to the fact that if the USD were really sinking, then agricultural commodities should [...] [...] this post I alluded to the fact that if the USD were really sinking, then agricultural commodities should [...]

]]> Comment on Mamee Bonus Issue by Concerns Regarding Earnings Quality | Trading Malaysia http://tradingmalaysia.com/?p=913&cpage=1#comment-284 Concerns Regarding Earnings Quality | Trading Malaysia Tue, 13 Oct 2009 03:02:49 +0000 http://tradingmalaysia.com/?p=913#comment-284 [...] Yesterday I wrote a post regarding the sustainability of Mamee. [...] [...] Yesterday I wrote a post regarding the sustainability of Mamee. [...]

]]> Comment on Economic Indicators by Yang http://tradingmalaysia.com/?p=840&cpage=1#comment-258 Yang Mon, 28 Sep 2009 20:09:30 +0000 http://tradingmalaysia.com/?p=840#comment-258 Thanks for providing this info dude. With regard to the optimistic chatter -- just game-theory being played out by the various Govts. Ciao! Thanks for providing this info dude.

With regard to the optimistic chatter — just game-theory being played out by the various Govts.

Ciao!

]]> Comment on Kentucky Fried Chicken by Chandra http://tradingmalaysia.com/?p=455&cpage=1#comment-159 Chandra Wed, 29 Oct 2008 01:24:34 +0000 http://tradingmalaysia.com/2007/06/10/kentucy-fried-chicken/#comment-159 You write very well. You write very well.

]]> Comment on Forum Back up! by Etiketer http://tradingmalaysia.com/?p=444&cpage=1#comment-79 Etiketer Mon, 04 Aug 2008 10:27:52 +0000 http://tradingmalaysia.com/?p=444#comment-79 Thanks! Really interesting. I wish i could spend my time on writing articles...just have no time for it. Thanks! Really interesting. I wish i could spend my time on writing articles…just have no time for it.

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