Asian Pay Television Trust (APTT)

[money]

APTT shares today touched a new all time low of $0.405. With a dividend payout of $0.01625*4 = $0.065 per annum we are looking at a payback period of 6.23 years to recoup the entire investment through dividends alone. Of course this is assuming they are able to keep paying the 6.5 cents of dividend without any further reductions in the next 6.23 years.

Their profitability this year has been slightly lower than previous years, but the sharp drop in the share price is puzzling. Wondering if anybody out there has an explanation for this extreme pessimism on APTT. Temasek holds 7.93% of the units and the reported transactions were at a price of $0.80 per unit in 2014.

Do not use the fact that temasek holds almost 8% of the units to make an investment. Many large investment holding companies out there always do something stupid.

My guess for the drop in share price is because the market is pricing in some rights since the payout is unlikely to be sustainable. Ask rickmers maritime and you will probably understand better