Flashback: CCB's Special Dividend.... in 2003

Dedicated to bonny b who said the following in the posting Will We See A Special Dividend From CCB?

• A company which is still in biz giving all its cash back to shareholders can only mean 2 things, 1. its major shareholders are dry and thirsty, and 2. it doesn't know how to develop the company anymore.In which case, future investors be forewarned.

I made the following reply:

• Honestly? I believe I said... almost the same thing back in 2006 but obviously, if my memory fails me not, I said it in a much more crudely. :P

I was digging through some of my personal old stuff and then I realise I really need to correct myself for it wasn't 2006 and more interestingly the events that happened then, is worth repeating once more.

It started back on 20th November 2003, to be precise. Special Dividend

Then, there existed this investment advisory company called Surf88. They made the following comments:

• C&C Bintang – A nice New Year present?
  By: Surf88
  Date: Friday, November 21, 2003
  Time: 8:11:39 AM
  
  C&C Bintang (CCB) (RM6.10, stock code 2925) indeed handed out a nice present for shareholders as it declared a special net dividend of RM3 per share, which will go ex on 17 Dec and be paid on 29 Dec, just in time for the New Year. The special windfall amounted to about half of its share price, which incidentally jumped 40 sen yesterday on fairly active volume.
  
  Surf88: Although a special dividend payout from CCB has been rumoured for sometime, we are still surprised by the generosity. Indeed, the dividend payment of up to RM304M has exceeded CCB’s net cash balance of RM209M as of end-Sep 2003, inevitably raising some eyebrows as to whether it is prudent to incur debt for dividend purposes.

Yes, I was amazed like everyone else. CCB announced it was going to pay a special dividend amounting to rm 304 million, which was much more than CCB had in its balance sheet.

On Feb 2004, I and everyone else, got the answer. Quarterly rpt on consolidated results for the financial period ended 31/12/2003 (CCB lost 2.44 million for that quarter)

The excel file attached in that earnings report was most interesting!

Yes they DID it!

They accepted a revolving credit and bankers acceptance from their kind bankers to 'reward' their shareholders!

Incredible yes?

And bonny, did you know what I wrote down?

Err... T.U.G.

Well T.U.G stands for .......



:P

Yeah, I went ballistic! I thought it was an act of insanity from their management. How could they pay/reward shareholders with money that they did NOT have? Surely it wasn't prudent! And what made me crazier was they reported quarterly losses in that quarter and the yearly earnings for that fiscal year was only 24.304 million, which represented a massive drop from its previous fiscal year earnings of 57.4 million. And to make it even much more crazier, on that very day, 18th Feb 2004, CCB gave another Final Dividend!
LOL!

I was like... how could I possibly 'invest' in a company whose management does appear to be prudent with its money management?

That was exactly what I noted in my notes back in 2003/2004.

And yeah... as much as I hated what was happening... somehow this company survived, despite the apparent lack of prudency and this stock, CCB, turned into a massive winner for its investors.

Read more...

CCB Plunges When No Special Dividend Is Announced

Blogged yesterday: Will We See A Special Dividend From CCB?

Well CCB announced its earnings, gave its usual interim dividend but no SPECIAL dividend.

And needless to say, the stock is getting hammered!

Read more...

Will We See A Special Dividend From CCB?

LOL! Since I had posted about Mercedes Selling Like Hot Cakes!, I started to remember about that cash paying dividend cow, Cycle & Carriage Bhd. (CCB)

Flashback: 2006. (those in Delphi would remember this. :D )

I was shocked in all honesty to read about CCB's Special Dividend announced in Aug 2008.

I looked at CCB's quarterly earnings announced on the very same day. Quarterly rpt on consolidated results for the financial period ended 30/6/2006

I was like.. err... wazzzzzzap doc? I was truly baffled and I was scratching and pulling my hair madly. I knew the stock and the company and I knew it wasn't that cash rich. Where was it going to get the moola to pay its dividends? What's happening here? Is it cashing out?

Yeah, I was sceptical indeed. The following was the balance sheet I was looking at.

See the above? CCB's cash balances was only some 15.279 million and if I am not mistaken, the dividends proposed came closed to 150 million!

I was WOWed, SHOCKED, and AWED!

But I refrained from chasing. For I had no idea what was happening.

The answer came in the quarterly earnings reported on Nov 2006. Quarterly rpt on consolidated results for the financial period ended 30/9/2006

The cash flow provided the clues: Proceeds from disposal of property, plant worth some 85 million.

So it was a MISS. Too bad.

But I wasn't too disappointed. They disposed the asset and they gave back the money to the minority shareholders.

So it was a SPECIAL dividend and this propably wouldn't happen again. Yeah, once in a blue moon.

I was some what correct, for in 2007, CCB did not make any special dividends payout.

Of course, like most other, I forgot all about it.

Then came 2008..... Special Dividend. Yesssir me, the special happened again.

On the very same day, CCB announced this quarterly earnings report. Quarterly rpt on consolidated results for the financial period ended 30/6/2008

Cash balances were some 65.9 million but again the special dividend was rather chunky! Total cash payment for the dividend was RM100.6 million based on then share capital of 100,744,500 shares.

Hmm... again... it did it.

Paying out more moola then it had. LOL!

October 2008: Quarterly rpt on consolidated results for the financial period ended 30/9/2008




Ok.. cash flow from its operations is decent but again there were disposal of 'assets' which helped fund this special dividend worth some 108 million.

How?

Then came 2009... it did it once more!

Special Dividend

And here's the quarterly earnings announced on the very same day. Quarterly rpt on consolidated results for the financial period ended 30/6/2009

Cash balances is now 83.719 million. (Have to give credit, yes? Despite all the massive cash payouts to its shareholders, CCB still manage to surprise!) (The total cash payment is RM90.7 million based on the present share capital of 100,744,500 shares.)

And where are we now?

It's 2010.... July.... and... CCB last traded at 7.44....

And of course, as long as there exist a share market, speculators would exist.

And the speculation is whether would CCB would pay another chunky ang pow once more. Yeah, the speculators want CCB to hit them one more time...

Here is April's quarterly earnings from CCB: Quarterly rpt on consolidated results for the financial period ended 31/3/2010

to be continued..

CCB's cash balances is again healthy at 81.746 million. So naturally the bet is that CCB could indeed hit them one more time....

That would be a reasonable wager, yes?

But... but.... but...... lol!

LOL?

Yes, my dearest. L-O-L !!!

You know why?

Well... if this idea ONLY comes to you NOW... seriously? This wager could be a real late wager. Yeah, you are not the early worm!

Take a look at CCB's recent performance.

How?

Doesn't the chart tells you that you have missed the zooming car?

Yes?

Or as they say.. whatever speculation you wanna make... it might not be rewarding because apparently the stock HAD already priced in the special play!

Would this not be a logical reasoning at this moment? The moment to jump and speculated on CCB had most probably passed you by. (hehe.. I could be wrong hor... you do know and understand.. the market has a mind of its own.. and on any given day, anything also can. )

Here's CCB 5 year chart performance.

ps: What bear market for CCB, eh?
ps: It's all mere speculation....yes.. there's a real good chance that the posting will be so flawed...
ps: Whether this posting is poison or not... do your own reasning...
ps: I do not know if you will lose money. :D

posting done: 4:45 pm. CCB last traded 7.46.

================================================

EDIT: 8:52 PM

Looks like NO special dividend. :P

• Cycle & Carriage earnings at RM5.88m
  
  Written by Joseph Chin
  Thursday, 22 July 2010 18:03
  
  KUALA LUMPUR: Cycle & Carriage Bintang Bhd, which sells Mercedes-Benz cars, reported net profit of RM5.88 million in the second quarter ended June 30, 2010, down 46% from the RM10.89 million a year ago where there was a one-off refund on duties.
  
  It said on Thursday, July 22 revenue rose 30% to RM161.02 million from the RM123.8 million a year ago. Earnings per share were 5.84 sen versus 10.82 sen.
  
  It declared an interim dividend of 5.0 sen a share compared with RM1.25 a year ago.
  
  For the first half, net profit declined 19% to RM12.63 million from RM15.51 million in the previous corresponding period. Revenue rose 29% to RM307.67 million from RM239.12 million a year ago.
  
  Commenting on the results, its chairman Ben Keswick said net profit from underlying operations was 15% up on the previous year mainly due to higher sales.
  
  He said the 2009 results were enhanced by a refund of RM4.5 million of duties previously written off.
  
  "Sales of Mercedes-Benz passenger cars rose by 29% benefiting from the improved market conditions and the strong demand for the new E-Class, which had been launched in the last quarter of 2009. The results from the group's after-sales operations were in line with the previous year," he said.
  

Read more...

Mercedes Selling Like Hot Cakes!

On Business Times:

• Mercedes-Benz H1 sales jump 29pc
  
  Published: 2010/07/22
  
  SALES of Mercedes-Benz vehicles in Malaysia accelerated 29 per cent in the first six months of 2010 to 2,417 units compared with only 1,869 units sold previously.
  
  In a statement, Mercedez-Benz Malaysia said it recorded an increase in all three-flagship luxury passenger car segments namely the Mercedes-Benz C, E and S classes.
  
  "The outstanding first half sales performance is testament to Mercedes-Benz being the brand of choice amongst discerning Malaysians," said president and chief executive Peter Honegg.
  
  He said stronger economic conditions has contributed positively to the automotive industry as a whole and has been one of the factors for the company's performance.
  
  "This has been the best half year performance to date," he said, noting the latest statistics set the company apart from the rest as the leading luxury car brand.
  
  The Mercedes-Benz C-Class, leads the premium automaker's passenger car sales with 1,097 units sold compared with 857 units in the first half of 2009 registering an impressive 28 per cent growth, buoyed by the introduction of C200 and CGI C250 Blue Efficiency earlier this year.
  
  The company is expected to introduce the new Cabriolet in the E-Class segment soon.
  
  "Leading products and brands are essential components of an explicit premium strategy - which is exactly the strategy we are pursuing at Mercedes-Benz," Honegg said.
  
  Meanwhile, Mercedes-Benz Malaysia vice-president of sales and marketing Florian Mueller said the company hopes to register more positive results in the near future.
  
  "We are currently offering our customers more environment-friendly vehicles in each segment," he said.
  
  The company said it will work closely with dealers to extend the high standards that all Mercedes-Benz customers are accustomed to so that brand loyalty is always at a high.

WOW!

Wasn't quite expecting this!

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