(27-11-2013, 08:14 AM)gautam Wrote: Hi gfg
Having 180k cash stuck there with 1%+ yield while waiting is indeed a tedious process, at leasr for me. Wat r ur thoughts when u decided to buy this counter?
Cos historically i dun remember ltc to give juicy div. Its recent raise still place the yield to me 1%+.
I agree that it is unlikely to sell its core biz seg ie steel biz.
Gautam
In this easy credit environment, it seems like everyone is just looking for yields. I too would prefer higher dividends but I look at the track record of LTC, the rise in share price has way exceeded any yield u can get over the last 5 years. The BOD have sizable stakes in the company and I am sure they would love to have more dividends too. I suspect they are conservative as they know of the cash problems of megasteel and would not want to repeat the same mistakes. As long as management does the right things with the capital, I am happy to support.
They have also raised the dividend this yr fy13, so they do take into account minority sentiment.
Actually, I prefer if they don't pay too much attention to minorities and just do what's right. Most minority SH are not bothered about how well a company does in the long run. They just want dividends every yr, or hope the share price shoots up quickly, before dumping for a profit.
Like I said, maybe if anyone of us is part of management, we would be singing a different song. We may be thinking these minorities don't even know anything about the business.
* my earlier stake was invested at a much lower price so I didn't come up with 180k. But point taken about the low yields in this easy credit environment
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