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VICOM
12-02-2018, 11:10 AM,
Post: #441
RE: VICOM
(10-02-2018, 10:58 AM)CY09 Wrote: http://infopub.sgx.com/FileOpen/VICOM_FY...eID=488445

Despite a lower profit and cash generation ability falling by approx 10% year on year, Vicom has announced a huge 22.88 cents dividends. This equates to a payout of about 20.3 mil cash.

Vicom's cash flow and balance sheet can definitely sustain this continuous high dividends. I will not be surprised if Vicom will continue to maintain annual dividend payout of 33-34 cents per share. After all, its parent company, CDG is also in need of cash.

At current price of $5.83, Vicom is definitely a good dividend stock to own. A balance sheet which is not leveraged, a business capable of generating 6.1% cashflow yield based on current price, it is better than our teleco stocks (highly geared and producing only about the same yield as Vicom)

I guess continuing a payout of 33-34cents/share is contingent to parent CDG's needs, than anything else. This cash generating ability has been there for a long time and the only fact that has changed, is CDG's need for cash.

There are some thoughts about privatization of VICOM by CDG. It may take ~150-200mil to make a robust bid from CDG to take over the remaining ~33% stake it doesn't own - While it was pausible a few years ago, but i thought the chances are remote now, especially with the 600mil acquisition of LCR (300mil of cash). Also, CDG seems to signal that it prefers to allow the golden goose to continues to lay eggs, than bring it home from the market - with this record announcement of dividends.

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12-02-2018, 03:08 PM, (This post was last modified: 12-02-2018, 03:09 PM by opmi.)
Post: #442
RE: VICOM
(12-02-2018, 11:10 AM)weijian Wrote:
(10-02-2018, 10:58 AM)CY09 Wrote: http://infopub.sgx.com/FileOpen/VICOM_FY...eID=488445

Despite a lower profit and cash generation ability falling by approx 10% year on year, Vicom has announced a huge 22.88 cents dividends. This equates to a payout of about 20.3 mil cash.

Vicom's cash flow and balance sheet can definitely sustain this continuous high dividends. I will not be surprised if Vicom will continue to maintain annual dividend payout of 33-34 cents per share. After all, its parent company, CDG is also in need of cash.

At current price of $5.83, Vicom is definitely a good dividend stock to own. A balance sheet which is not leveraged, a business capable of generating 6.1% cashflow yield based on current price, it is better than our teleco stocks (highly geared and producing only about the same yield as Vicom)

I guess continuing a payout of 33-34cents/share is contingent to parent CDG's needs, than anything else. This cash generating ability has been there for a long time and the only fact that has changed, is CDG's need for cash.

There are some thoughts about privatization of VICOM by CDG. It may take ~150-200mil to make a robust bid from CDG to take over the remaining ~33% stake it doesn't own - While it was pausible a few years ago, but i thought the chances are remote now, especially with the 600mil acquisition of LCR (300mil of cash). Also, CDG seems to signal that it prefers to allow the golden goose to continues to lay eggs, than bring it home from the market - with this record announcement of dividends.

Can milk the other cow on the CDG farm.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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