Let's look for treasure!
I happen to recall an episode on an adult cartoon about 2 foul characters known as “Terrence & Philip”. But this is not a post about their cartoon, but rather to borrow a phrase from them that depicts their favorite game where one of them says “Let’s look for treasure!”. Most often, this game was played in the oddest of places.
As I was browsing the stock market to hunt for bargains (did I mention that the stock market is now like a Great Singapore Sale?), I happened to notice the developments of M1. Here is a brief take on the situation to help you decide if it is a true hidden treasure.
According to M1’s CEO Neil Montefiore in statement recently on its 3rd quarter results for 2008, there are some tidbits of information that he mentioned that are of particular interest to me as a share owner of the company:
- The stock expects a single digit % drop in net profit earnings for 2008
- M1 aims to pay 80% of net profits out as dividends
So what do these information tell me? If all else remains constant, we can expect:
- Net profit to be at S$154.17 million assuming a 10% drop in profits (yes, I am a pessimist!)
- Expected dividends can be S$123.34 million
- Current outstanding shares in market – 893.88 million shares
- Dividend per share is then S$0.137 per share
- Dividend payout of 7.4% against a valuation share price of S$1.85, or
- Dividend payout of 8.5% against the current share price of S$1.61
Compared to the interest rates of what is available out there, is this a hidden treasure or what?
P.s. Take note that the current price of M1 is at S$1.61 at the time of writing.
Hi Ryan,
I am Kay from moneytalk.sg. Will it be alright if we can do a link exchange ? Thanks (:
Kay
Done! Cheers!
Guess our “Buffet” is lost after his m1 drop..
haha..
It is surprising how much you can tell about someone from just one sentence. Before I respond to you, perhaps l should describe a little about you:
- You are possibly a speculator. Without the patience of a true investor. It has been less than year since I bought into M1. So why the rush? My usual “short” term investment is about 5 years…
- You are an “arsonist” without the guts. Starting flame wars, but yet without the courage to leave your contacts for a rebuttal
- You are short-sighted. You probably stare too hard at technical charts that you miss the big picture about investment. You buy into a company, not the stock.
- You are forgetful. There is more to stocks than its share price. Dividends?
Now to entertainment your accusations. I am resting for the next opportunity to buy into the market. Which is about time soon after the string of bad news at the recent financial quarter. If I were you, start studying the stocks you want to buy into. There are gems there. Here’s putting money into your pocket.
Hi, sorry a bit off topic here. Could you send me an email to sgbluechip@gmail.com? I have an advertising company willing to place an advert on your blog. Fees will be paid upfront. Do let me know if you are keen.
Do indicate your blog address when you email me. Thank you!