Flashback: 2006. (those in Delphi would remember this. :D )
I was shocked in all honesty to read about CCB's Special Dividend announced in Aug 2008.
I looked at CCB's quarterly earnings announced on the very same day. Quarterly rpt on consolidated results for the financial period ended 30/6/2006
I was like.. err... wazzzzzzap doc? I was truly baffled and I was scratching and pulling my hair madly. I knew the stock and the company and I knew it wasn't that cash rich. Where was it going to get the moola to pay its dividends? What's happening here? Is it cashing out?
Yeah, I was sceptical indeed. The following was the balance sheet I was looking at.
See the above? CCB's cash balances was only some 15.279 million and if I am not mistaken, the dividends proposed came closed to 150 million!
I was WOWed, SHOCKED, and AWED!
But I refrained from chasing. For I had no idea what was happening.
The answer came in the quarterly earnings reported on Nov 2006. Quarterly rpt on consolidated results for the financial period ended 30/9/2006
The cash flow provided the clues: Proceeds from disposal of property, plant worth some 85 million.
So it was a MISS. Too bad.
But I wasn't too disappointed. They disposed the asset and they gave back the money to the minority shareholders.
So it was a SPECIAL dividend and this propably wouldn't happen again. Yeah, once in a blue moon.
I was some what correct, for in 2007, CCB did not make any special dividends payout.
Of course, like most other, I forgot all about it.
Then came 2008..... Special Dividend. Yesssir me, the special happened again.
On the very same day, CCB announced this quarterly earnings report. Quarterly rpt on consolidated results for the financial period ended 30/6/2008
Cash balances were some 65.9 million but again the special dividend was rather chunky! Total cash payment for the dividend was RM100.6 million based on then share capital of 100,744,500 shares.
Paying out more moola then it had. LOL!
October 2008: Quarterly rpt on consolidated results for the financial period ended 30/9/2008
Ok.. cash flow from its operations is decent but again there were disposal of 'assets' which helped fund this special dividend worth some 108 million.
How?
Then came 2009... it did it once more!
And here's the quarterly earnings announced on the very same day. Quarterly rpt on consolidated results for the financial period ended 30/6/2009
Cash balances is now 83.719 million. (Have to give credit, yes? Despite all the massive cash payouts to its shareholders, CCB still manage to surprise!) (The total cash payment is RM90.7 million based on the present share capital of 100,744,500 shares.)
And where are we now?
It's 2010.... July.... and... CCB last traded at 7.44....
And of course, as long as there exist a share market, speculators would exist.
And the speculation is whether would CCB would pay another chunky ang pow once more. Yeah, the speculators want CCB to hit them one more time...
Here is April's quarterly earnings from CCB: Quarterly rpt on consolidated results for the financial period ended 31/3/2010
to be continued..
CCB's cash balances is again healthy at 81.746 million. So naturally the bet is that CCB could indeed hit them one more time....
That would be a reasonable wager, yes?
But... but.... but...... lol!
LOL?
Yes, my dearest. L-O-L !!!
You know why?
Well... if this idea ONLY comes to you NOW... seriously? This wager could be a real late wager. Yeah, you are not the early worm!
Take a look at CCB's recent performance.
How?
Doesn't the chart tells you that you have missed the zooming car?
Yes?
Or as they say.. whatever speculation you wanna make... it might not be rewarding because apparently the stock HAD already priced in the special play!
Would this not be a logical reasoning at this moment? The moment to jump and speculated on CCB had most probably passed you by. (hehe.. I could be wrong hor... you do know and understand.. the market has a mind of its own.. and on any given day, anything also can. )
Here's CCB 5 year chart performance.
ps: What bear market for CCB, eh?
ps: It's all mere speculation....yes.. there's a real good chance that the posting will be so flawed...
ps: Whether this posting is poison or not... do your own reasning...
ps: I do not know if you will lose money. :D
posting done: 4:45 pm. CCB last traded 7.46.
================================================
EDIT: 8:52 PM
Looks like NO special dividend. :P
- Cycle & Carriage earnings at RM5.88m
Written by Joseph Chin
Thursday, 22 July 2010 18:03
KUALA LUMPUR: Cycle & Carriage Bintang Bhd, which sells Mercedes-Benz cars, reported net profit of RM5.88 million in the second quarter ended June 30, 2010, down 46% from the RM10.89 million a year ago where there was a one-off refund on duties.
It said on Thursday, July 22 revenue rose 30% to RM161.02 million from the RM123.8 million a year ago. Earnings per share were 5.84 sen versus 10.82 sen.
It declared an interim dividend of 5.0 sen a share compared with RM1.25 a year ago.
For the first half, net profit declined 19% to RM12.63 million from RM15.51 million in the previous corresponding period. Revenue rose 29% to RM307.67 million from RM239.12 million a year ago.
Commenting on the results, its chairman Ben Keswick said net profit from underlying operations was 15% up on the previous year mainly due to higher sales.
He said the 2009 results were enhanced by a refund of RM4.5 million of duties previously written off.
"Sales of Mercedes-Benz passenger cars rose by 29% benefiting from the improved market conditions and the strong demand for the new E-Class, which had been launched in the last quarter of 2009. The results from the group's after-sales operations were in line with the previous year," he said.
A company which is still in biz giving all its cash back to shareholders can only mean 2 things, 1. its major shareholders are dry and thirsty, and 2. it doesnt know how to develop the company anymore.
ReplyDeleteIn which case, furture investors be forewarned.
Belum habis writing. :P
ReplyDeletelike your 'live blog'. keep it up!
ReplyDeletebonny b: Quote:"A company which is still in biz giving all its cash back to shareholders can only mean 2 things, 1. its major shareholders are dry and thirsty, and 2. it doesnt know how to develop the company anymore.
ReplyDeleteIn which case, furture investors be forewarned."
Honestly? I believe I said... almost the same thing back in 2006 but obviously, if my memory fails me not, I said it in a much more crudely. :P
UR A RARE BREED.U SEE THINGS OTHERS DO NOT SEE.I BOUGHT CCB FOR A 100 UNIT WHEN I HEARD THE SPECIAL DIVIDEND ANNOUNCEMENT.I PAID ABOUT RM300+ AND I RECEIVED ABOUT RM100+
ReplyDeleteAS AN XPERIMENT.I SOLD THE 100 UNIT LATER AND NOW,IF I HAD KEPT CCB,I WOULD HAVE ABOUT RM 700+.
I DONT KNOW WHAT U SAW AND I HOPE U KEEP UP THIS GOOD WORK.IT MAKES ME THINK OF THE OTHER SIDE ON INVESTMENT.
Looks like NO special dividend. :P
ReplyDeleteCycle & Carriage earnings at RM5.88m
Written by Joseph Chin
Thursday, 22 July 2010 18:03
KUALA LUMPUR: Cycle & Carriage Bintang Bhd, which sells Mercedes-Benz cars, reported net profit of RM5.88 million in the second quarter ended June 30, 2010, down 46% from the RM10.89 million a year ago where there was a one-off refund on duties.
It said on Thursday, July 22 revenue rose 30% to RM161.02 million from the RM123.8 million a year ago. Earnings per share were 5.84 sen versus 10.82 sen.
It declared an interim dividend of 5.0 sen a share compared with RM1.25 a year ago.
For the first half, net profit declined 19% to RM12.63 million from RM15.51 million in the previous corresponding period. Revenue rose 29% to RM307.67 million from RM239.12 million a year ago.
Commenting on the results, its chairman Ben Keswick said net profit from underlying operations was 15% up on the previous year mainly due to higher sales.
He said the 2009 results were enhanced by a refund of RM4.5 million of duties previously written off.
"Sales of Mercedes-Benz passenger cars rose by 29% benefiting from the improved market conditions and the strong demand for the new E-Class, which had been launched in the last quarter of 2009. The results from the group's after-sales operations were in line with the previous year," he said.