Post Reply
21-40 of 67
I believe the company is on good and solid track. This coming dividend payment will decide if it will remain passive or it will rocket. I would expect management to propose a good payout.
hotokee ( Date: 05-Apr-2011 11:45) Posted:
|
Richman ( Date: 04-Jun-2010 09:51) Posted:
|
Richman ( Date: 04-Jun-2010 09:51) Posted:
|
Good piece of info... I will buy more lots...
baberic ( Date: 04-Jun-2010 09:43) Posted:
|
Azeus pays good dividends again. A dividend yield of more than 11 percent against your investment dollar.
I read some of you don't like high dividends but some of you also hate a company that doesn't give a return, quite paradoxical to think of it. I am sometimes confused whether what advise to take. I am new here and hope you don't mind if I say something that is not right.
I see and appreciate your points. Yeah, agree that many forumers should have made their millions aready. Frankly I know some of the forumers who made it.
Hope you also make it as soon as possible. I am still trying, but have confidence to make it even at this time of the market.
Juzztrade ( Date: 08-Jan-2010 21:28) Posted:
|
It's not very nice to state name. PIM is also important here. Why not you do a search and read more under the following heading
Others
/
How to be a millionaire by 2012? Thanks and Best Regards
hotokee ( Date: 08-Jan-2010 16:46) Posted:
|
Juzztrade ( Date: 08-Jan-2010 15:50) Posted:
|
To be very frank, many ex-forumer here have already made their millions and now are all buying landed property in Orchard Road and Nassim Road.
You know who if you have been reading the post here since early 2007.
All the best to them in their future endeaver...
hotokee ( Date: 08-Jan-2010 15:39) Posted:
|
You can either buy up to 25% and give a general offer. Another way is to buy a reasonable amount of shares and request for a board representation without a general offer. Azeus capital is 300,000,000 shares, and it would require abt SGD$4.5 million to 5 million to buy 25 percent. The company presently has good contracts in the IT and computers business. They could have more the SGD$10.00 million or more in cash horde. Just do some calculations, if for general offer it might take upto SGD$18 Million. to buy all the shares at 6 cents.
ekekeg ( Date: 08-Jan-2010 15:14) Posted:
|
hotokee ( Date: 08-Jan-2010 11:25) Posted:
|
I think this guy will soon have its play. Dividend play is quite important like Achieva which because of dividends went from 8 cents to 12 cents.
Smart trader, Laulan has given you a good analysis of Azeus considering some areas to look at already. Smart trader, I personally will also look at a company sitting on good amount of cash and cash equivalents, and also marketable securities since these items can be liquidated easily to pay off short-term debts if required. So, I will also consider the company's quick ratio together with current ratio to assess the company's financial stability (that it will unlikely run into problems paying off it's short-term debts).
However, I do not like companies sitting on far too much cash and cash equivalents, and also I dislike small companies giving out too much dividends (with a high dividend payout ratio). For companies sitting on excess cash and cash equivalents, unless the company has a good reason to do so (such as planning for future aquisations or projects), too much cash and cash equivalents hoarded by the company for long period of time may mean the company is not efficient at deploying it's capital into growing it's business. This is especially bad for small companies if they do not know how to employ their cash (from loans, equities or retained profits) to fund their future growth.
Also, smaller companies giving out excessive dividends may suggest the company is not good at deploying it's earnings to grow it's business. If a company is so good at making earnings since their business is excellent, why will the company not want to grow it's excellent business with their earnings to enlarge the business further. As shareholders, most will want high amounts of dividends from a promising company. As for me, I prefer receiving less or no dividends if the company is really good at churning out high earnings, so that the earnings from the company can be retained (instead of giving shareholders) and better used to grow their excellent economics to bring it to an even higher level.
Once a company has finished it's growing phase and starts maturing, then it is more justifiable to provide shareholders with high dividends since the potential for future growth is limited. It will be better then for the company to retain lesser earnings and give out more of their earnings to their shareholders since they cannot grow their business at high rate of returns for their shareholders anymore. Shareholders may then use the dividends to invest in other ways that can yield better returns.
<Consistently high dividends yield, high ROEs and low debt to equity ratios for more than 10 years may suggest something special about the economics of the company such that it is so good at churning out earnings and also growing it's profitable operations that it has no problems returning a good amount of cash from it's earnings to their shareholders.>
Azues is not ideally a counter where an analyst will invest in. However, it depends on your objective and preference as a share investor. Looking at its annual report one can observe the following:
1. That the company is cash rich, and having more than 50 percent of its assets in cash and cash equivalents. This makes it owing others little or lesser and thus have a lower liability.
2. The Current Ratio (CA vs CL) is high and is about 11.3 which means that for every dollar it owes, it has 11.30 dollars to back it. Thus no problem with creditors and therefore less likely to fail in a crisis.
3. Although there is a decline in net profit from previous year, but we could understand owing to the global financial crisis. But we look at it that there is prudence exercised since there is an increase in the reserves. It must be noted that it has a low ROE. Analysts don't like low ROEs.
4. The interesting part is that the market price is giving a good dividend yield of 8.33 percent as already calculated. High saving yeilds lovers will like this type of yields which cannot be obtained from interest rates provided by banks in Singapore. Needless to say, bank has lesser risk and savers money in banks returns very marginally. If the years are fast to go by, then savers will prefer to put it in shares and collect dividends.
CE: This is by no means everything to say about the company and is also not a calling to buy or sell.
smartrader ( Date: 11-Jul-2009 11:16) Posted:
|
Thanks for the illustration on looking at the ROE financial ratio objectively while considering the debts and liabilities. This ratio actually takes into account the net income earned compared with the shareholders' equity. So, the net income plays a part in determining the final ROE. It is a complex thing in analysing a company's financial strength as there are many factors to consider. In your illustration, it is a choice between a company with larger amount of liabilities but stronger ROE or the company with lower amount of liabilities but weaker ROE. I will still hope to have the best of both, a company with lower amount of liabilities and higher net income resulting in higher ROE.
So there are other factors such as gross margin of the company's products or services to consider. Add to that will be how the company manages it's various cost of operations to ensure a higher net income after deducting all the costs of operations. So, a company with high net income can potentially result in a high ROE. This is assuming an investor just look at profitability based alone on equity employed by the company compared to the net income it can churn out from the shareholders' equity employed thus far (without considering the liabilities employed by company).
In reality, the amount of liabilities employed by the company is also an important consideration. If a company employs minimal liabilities and still can churn out very high net income compared to it's shareholders' equity employed thus far in it's business, this company is good at maintaining low liabilities sitting on good ROE for it's shareholders.
So, I will like companies that has low liabilities and debts (be it short-term or long term) and still are good at churning out high net income resulting in a potentially high ROE. This may suggest that such companies is very profitable since it does not need to employ too high amount of liabilities for it's business and yet can maintain high ROE for it's shareholders.
I believe a simple example should present to us why debts can affect a company's ROE.
Suppose that Coy A and Coy B have the same amount of assets ($10,000) and the same net income ($1200) but different levels of debt: Coy A has $5000 in debt and therefore $5000 in shareholder's equity ($10,000 - $5000), and Co B has $2000 in debt and $8000 in shareholder's equity ($10,000 - $2000). Company A shows an ROE of 24% ($1200/$5000) while Company B, with less debt, shows an ROE of 15% ($1200/$8000). As ROE equals net income divided by the equity figure, Company A, the higher-debt firm, shows the highest return on equity.
Thanks Jeremy for pointing out that debts are not deducted from shareholders equity. They are in fact one of the liability items contributing to the end figures of shareholders' equity.
Coming to ROE again, it should not be considered as an absolute indicator of investment value. After all, this ratio gets a big boost whenever the value of the shareholders' equity goes down.
Writedowns and share buy-backs normally depress shareholders' equity and provide and artificial boost to the ROE.
Furthermore, a high ROE doesn't tell you if a company has excessive debt and since shareholder's equity is assets less liabilities, which represent what the firm owes, including its long and short-term debt... So, the more debt a company has, the less equity it has; and the less equity a company has, the higher its ROE ratio will be.
On the whole, the ROE figures of 15% or higher has always been prefered and those companies with ROE of less then 15% not a preferred. But for most people who play shares in a small way, they are not so concerned about most financial ratios. I seldom use any because mostly am on hit and run basis.
Cheers.
jeremyow ( Date: 10-Jul-2009 12:35) Posted:
|