Adampak

Adampak goes 'XD' today (6Sep11) for the $0.01/share Interim dividend for FY11. As usual and in the next few market days, the stage is set for a little test for and a little tussle between the 'boys' - i.e. those who are perhaps 'too smart' or a little short-term, and buy a stock when it is cum-dividend and sell it when it goes 'XD' - and the 'men' - i.e. those who look at dividends as an intergral part of total return for investing in a stock for the longer term, and who may deliberately try to buy more shares when a counter goes 'XD', especially when its price falls more than the dividend amount, making it even more attractive to invest.

S&P update report on Adampak dated 16Sep11 based on the Q2/1H results....
http://research.sgx.com/reports/rpt_view.pl?id=6585

After taking a look at Adampak's share price/volume chart for the last 2 weeks since the 'XD' date on 6Sep11, it appears that despite the current rout and depressed/uncertain state of the stock market, the 'men' have again prevailed over the 'boys' in this case. This, I should add, is a very good sign and reliable indicator of the very high quality Mr Market is prepared to attach to Adampak as an investment-grade stock counter.

Just checked my bank account and noted a very nice credit from Adampak's $0.01/share Interim dividend for FY11 (ending 31Dec11). Feeling superb!

I have also noted that the USD/SGD exchange parity has advanced sharply by some 8% so far this month (Sep11), from the 1.204 level on 1Sep11 to close to the $1.30 level yesterday (23Sep11). This appreciation of the SGD vs. USD should be good for Adampak and the many others parts suppliers and electronics contract manufacturers which sell in mostly USD but incur a great portion of their operating expenses in SGD or other regional Asian currencies.

If the economy crisis goes full blown, the demand for their products may drop a lot. I cleared out my holdings last week.

(24-09-2011, 08:25 PM)Contrarian Wrote: If the economy crisis goes full blown, the demand for their products may drop a lot. I cleared out my holdings last week.

in the last 08/09 crisis, i recalled adampak reached as low as 0.14-0.15. my cost-in price net of dividends received for those shares that i bought and have not sold any to-date is at 0.0958.
based on what dydx shared At $0.26, assuming Adampak keeps the same (as last FY10's) total dividend payout for FY11 at $0.03/share - i.e. an $0.01/share Interim, to be followed by a $0.02/share Final in May12 - we will get a dividend yield of 11.54%'
at my cost-in price of 0.0958, i am getting 31.3% dividend yield. it doesnt make sense for me to square my position.
still fully vested

it's a gambler's mentality to keep going as long as u still have winnings in your pocket... simply because your buy in price is comparatively low, doesn't justify holding it.

(24-09-2011, 08:46 PM)pianist Wrote: in the last 08/09 crisis, i recalled adampak reached as low as 0.14-0.15. my cost-in price net of dividends received for those shares that i bought and have not sold any to-date is at 0.0958.
based on what dydx shared At $0.26, assuming Adampak keeps the same (as last FY10's) total dividend payout for FY11 at $0.03/share - i.e. an $0.01/share Interim, to be followed by a $0.02/share Final in May12 - we will get a dividend yield of 11.54%'
at my cost-in price of 0.0958, i am getting 31.3% dividend yield. it doesnt make sense for me to square my position.
still fully vested

You have made an irrational decision. What you paid for is irrelevant. You have this mentality of "playing with other people's money". What's important is at the current price and prospect of the company, is it worth buying or holding. If you continue with this historical price mentality then you will never learn how to cut loss when the time comes and this is one of the most expensive lesson that the market can teach you. It took me a long time to learn it too as it is too painful each time but now i found a lesser painful way around it. each time i cut loss i quickly reinvest into another stock that has a better prospect. In this way I treat it as switching and not so much as cut loss.

Personally, I think historical yield based on purchase price is pretty meaningless.
I prefer to look forward based on the current market price.

If you hold on to Adampak for another few more years and discount it with received dividends, one day your dividend yield will go infinite

(24-09-2011, 08:46 PM)pianist Wrote:

(24-09-2011, 08:25 PM)Contrarian Wrote: If the economy crisis goes full blown, the demand for their products may drop a lot. I cleared out my holdings last week.

in the last 08/09 crisis, i recalled adampak reached as low as 0.14-0.15. my cost-in price net of dividends received for those shares that i bought and have not sold any to-date is at 0.0958.
based on what dydx shared At $0.26, assuming Adampak keeps the same (as last FY10's) total dividend payout for FY11 at $0.03/share - i.e. an $0.01/share Interim, to be followed by a $0.02/share Final in May12 - we will get a dividend yield of 11.54%'
at my cost-in price of 0.0958, i am getting 31.3% dividend yield. it doesnt make sense for me to square my position.
still fully vested

I bought quite an amount at 0.18, sold some at 0.295 and all at 0.315. Fully divested.

from nextinsight:
Adampak (25 cents): It is in a fairly mature industry, capex is not significant and free cash flow generation therefore remained strong.

In the past five years, the company has paid out all of its earnings in dividends, and even during the recession years, dividend payout averaged about 60%.

With an interim dividend of 1 cent per share (64% of 1H11 earnings), it looks set to continue a payout of at least 80‐90% for the full year. As at June 2011, net cash accounted for 19% of market cap, in line with historical trends.