Metro Holdings

dividend is comparable to last year (2 + 4 vs 2 + 2 + 1), but last year got 1 for 5 bonus.

administrative expense dropped, does that mean, someone was getting less bonus this year?

(30-05-2012, 10:27 AM)sgpunter Wrote: I beg to differ. I think Metro has improved A LOT and its still a very undervalued gem. One of the top performers in my portfolio.

Have you read the company's articles of association? If you havent, request a copy for it and read it.

(30-05-2012, 11:47 AM)propertyinvestor Wrote:

(30-05-2012, 10:27 AM)sgpunter Wrote: I beg to differ. I think Metro has improved A LOT and its still a very undervalued gem. One of the top performers in my portfolio.

Have you read the company's articles of association? If you havent, request a copy for it and read it.

Nope I have not. Since you say Metro is F Up with a self serving management, why don't you share with us why you think so? Is it the perennial complaint regarding somebody in the company who gets ridiculous bonuses? I have been reading about that in so many forums but I think that's old news.

As long as I have been vested in Metro, I think they have been pretty decent to shareholders. Special dividends paid out 2 years in a row plus bonus shares. I can also see that they are focusing much more on investor relations recently unlike before.

Market unhappy with 6 cents dividend, below expectation ?

market forgot that the 6cts divds is ex-bonus of 1 for 5. For those who got their bonus shares last year, they are actually getting 7.2cts divds this year.

Metro is another deeply valued stock.

Based on DMG analysis, net cash per share amounted to $0.52 before payment of final dividends of $0.06. Long and short term investments added another $0.20. Total NTA is $1.346.

On all counts, its undervalued. However, mr mkt has been valuing it as it appears that Metro will not unlock value.

With cash swelling at such levels and Metro being an established Singapore incorporated co, there is no reason to believe that it should be valued like S chips.

Unfortunately, Metro has not signalled to the market adequately at all. Ordinary dividend stays at a flat 2 cents (notwithstanding bonus issues). Special dividend is dependent on asset sales. This is the part where it appears that future asset sales are unlikely given the state of Chinese economy. In previous years when credit was loose, Metro was able to sell assets at huge profits to sorchais.

Personally, I think that Metro may have missed a big opportunity to indicate to the market its willingness to unlock shareholders' wealth. If we looked at a comparable company - Hwa Hong and even Cougar Logistics where discount to book was lifted to premium to book, it is inevitable that Metro must show the market the colour of money in order to repeat a similar trend.

I think Metro has the ability to repeat a Hwa Hong or Cougar while maintaining its present core business. In a inflationary environment of around 4%pa, to sit on a huge cash hoard for real estate business is ultra conservative and hence the skepticism surrounding mgt's intention to enhance shareholders' wealth.

Until then, its akan datang and yet another wrong term investment.

(30-05-2012, 04:11 PM)Stocker Wrote: Market unhappy with 6 cents dividend, below expectation ?

i saw today presentation slide and noted that in recent years, there has been consistent special dividend given. 6 cents is like wow around 7++ % annual yield..not bad i think

With all the big hooha about director remuneration during the recent AGM, I wonder what would be the pay check for Jopie Ong?

Not less than S$10 Millions for sure.

Some hint from the performance Review section:

"General and administrative expenses rose to $13.1 million in 4QFY2012 from $10.1 million in 4QFY2011 mainly due to provisions for management performance bonuses relating to the disposal of the Group’s interest in Huamao"

Actually the 6 cents dividend declared is better than what I had expected, at least besides rewarding himself, JO also know how to reward minority shareholder.