Boustead Singapore

(29-08-2024, 07:14 AM)Bibi Wrote:

(29-08-2024, 12:17 AM)CY09 Wrote: Hi Bibi,

yes that will work, you will profit from 8 cents per share sold

Thanks CY09 for your reply. Appreciate it.

I opted for scrip and sold as well.

Make sure u opt for partial dividend to optimise the rounding up to nearest whole number formula.

(29-08-2024, 09:55 AM)AQ. Wrote:

(29-08-2024, 07:14 AM)Bibi Wrote:

(29-08-2024, 12:17 AM)CY09 Wrote: Hi Bibi,

yes that will work, you will profit from 8 cents per share sold

Thanks CY09 for your reply. Appreciate it.

I opted for scrip and sold as well.

Make sure u opt for partial dividend to optimise the rounding up to nearest whole number formula.

Noted. Thanks for the suggestion.

Would share price decline back to script price ($0.90) post listing of the script shares?

Or the current share price would already have self-adjusted and accounted for the extra script shares?

Somehow, the logic thing to do is to opt for the script dividends and sell at market price, but the share price kept going up .....haha

Dear all,

I don't really understand the logic behind what most of you have presented here - i.e. opt for scrip dividend at a lower price and immediately sold the corresponding number in the market at a higher price to lock in the "risk free" gains.

If one is confident of the future prospects of a company and their shares are deemed undervalued, one should reinvest the dividends back into the company and accumulate for future compounded returns. Unless it is about portfolio allocation whereby one exceeds a stipulated limit and needs to divest, then I understand it.

(30-08-2024, 09:30 AM)ghchua Wrote: Dear all,

I don't really understand the logic behind what most of you have presented here - i.e. opt for scrip dividend at a lower price and immediately sold the corresponding number in the market at a higher price to lock in the "risk free" gains.

If one is confident of the future prospects of a company and their shares are deemed undervalued, one should reinvest the dividends back into the company and accumulate for future compounded returns. Unless it is about portfolio allocation whereby one exceeds a stipulated limit and needs to divest, then I understand it.

hi ghchua,

I believe there are VBs who may depend on the dividends for their own cashflow needs. As such, it makes total sense for them to think of ways to maximize the dividends, isn't it?

(30-08-2024, 09:42 AM)weijian Wrote: hi ghchua,

I believe there are VBs who may depend on the dividends for their own cashflow needs. As such, it makes total sense for them to think of ways to maximize the dividends, isn't it?

Hi weijian

I agree. Then the question should be - Is the current market price of Boustead Singapore still undervalues the company? If it is, then to extract out the dividends from Boustead Singapore scrip dividend participation, perhaps one should sell part/all of another overvalued/fairly valued stock in your portfolio to extract the corresponding dividend amount out.

My point is really, the focus is not to just extract the amount from Boustead Singapore, but look at it holistically from a portfolio perspective.

Hope the above clarifies.

(30-08-2024, 09:42 AM)weijian Wrote:

(30-08-2024, 09:30 AM)ghchua Wrote: Dear all,

I don't really understand the logic behind what most of you have presented here - i.e. opt for scrip dividend at a lower price and immediately sold the corresponding number in the market at a higher price to lock in the "risk free" gains.

If one is confident of the future prospects of a company and their shares are deemed undervalued, one should reinvest the dividends back into the company and accumulate for future compounded returns. Unless it is about portfolio allocation whereby one exceeds a stipulated limit and needs to divest, then I understand it.

hi ghchua,

I believe there are VBs who may depend on the dividends for their own cashflow needs. As such, it makes total sense for them to think of ways to maximize the dividends, isn't it?

Not forgetting there is a cost factor and no doubt the broker would not discourage the transaction and perhaps do the opposite. Win-Win ? 

I think I will be the bigger fool if i didnt take advantage of this script/dividend price difference as I have no intention of increasing my stake anymore. I remember when Boustead was trading at 60+ cts or below Wong FF ceased script option citing low share price few years back. So if he is reinstating back script dividend to me it means the current price is not very undervalue.

As its business is cyclical in nature I believe the chance of it going back to below 80cts is far higher than it going to some fair valued price of $1.60 or even $2.50 as projected by some buddies here.

Wait for it to crash back to net cash level at 77 cents … after a few quarters , its net cash will catch up with share price haha…

Geospatial segment is a steady ship - not cyclical…I believe the geospatial segment alone can cross $0.10 EPS in the quarters to come …

(30-08-2024, 12:42 PM)Bibi Wrote: So if he is reinstating back script dividend to me it means the current price is not very undervalue.

Hi Bibi,

So according to your logic, you are saying that Boustead Singapore reinstate back the scrip dividend at a "not so attractive" price to discourage participation? Then what is the point of doing a scrip dividend scheme then? So that the participation rate is low and you ended up not saving any money but also paying the service providers?

So you believe that the share price will go back to 80c? Then why are you saying that you are not increasing your stake anymore? You should sell all your shares now and buy back at 80c later.

My point is that one should not be too focused on short term share price movements. Yes, businesses are cyclical but as investors, we are focused on long term outlook of the company.