Powermatic Data Systems

[BlueKelah]

So if management decides to increase dividend to 1.5 cents per share and for next financial year they failed to achieve similar EPS due to FX losses instead wouldn't the shareholders be extremely disappointed?

without FX gains EPS would be still 1.1c which is enough for 1c dividend at least for this year, without dipping into cash pile.

Management will not increase dividend to 1.5c as the distribution business is not that hot nor growing. Not sure why the HYPOTHETICAL scenario of increasing div 1.5c should be even SPECULATED on.

The main reasons for its discount to NAV would be the stock is only a thinly traded micro-cap with current Mcap only at 33m and has no "sexy" story to spin. Coupled with a lousy distribution business that in the past year seems to be shrinking in revenue. It doesn't make the cut for a typical "dividend" stock which investors would buy for a passive income focus portfolio..

as mentioned before, management seems to be more interested in becoming a holding company. A big chunk of income already comes from its property and investments. There was even a "Fair value adjustment on available-for-sale financial assets of 1.793m" gain which was not used to calculate EPS. That's an extra 1c+ of paper gain which hopefully they lock in sometime soon.

Top 20 Shareholders already consist >80% of float. If they continue more share buybacks and after the share consolidation, there wont be many lots left to trade.

-v-