CABO - Will they or won't they?

stocks hunter · 1 CABO - Will they or won't they? Thu Jul 25, 2013 7:44 am

stocks hunter

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By now we all now that CABO has sold 600,000 out of 2,000,000 LLUB holding they have. we believe that the sale of 600,000 LLUB @ Rs375 would be the CABO quantity.

Now the profit from the sale of LLUB quantity is well above Rs 15/ CABO share.

Will they pass the benefit of this capital gain to us since share holders of a company are the ultimate owners of it? (NDB has already done it by declaring Rs 15 dividend /share in last Quarter from the profit they earned from the Eagle insurance sale to AIA) Or else will they come up with a good long term investment which will benefit the share holders in the long run?

What is your idea..........

Antonym · 2 Re: CABO - Will they or won't they? Thu Jul 25, 2013 8:10 am

Antonym

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Based on history, I would guess that CABO will distribute only a minor portion of the profit to shareholders, as dividend.
Out of the Rs 19.66 profit per share, would it be reasonable to expect Rs 5~8?

Slstock · 3 Re: CABO - Will they or won't they? Thu Jul 25, 2013 10:17 am

Slstock

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Going by their past history one cannot expect too much as dividend. RENU has Rs 60 Eps and they only gave Rs 6.

Antonym wrote:Based on history, I would guess that CABO will distribute only a minor portion of the profit to shareholders, as dividend.
Out of the Rs 19.66 profit per share, would it be reasonable to expect Rs 5~8?

Dileepa · 4 Re: CABO - Will they or won't they? Thu Jul 25, 2013 10:43 am

Dileepa

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Don't expect huge dividends from investment companies.
They need to build reserve cash for future operations.
Rs.4/= would be a fair expectation.

anges · 5 Re: CABO - Will they or won't they? Fri Jul 26, 2013 4:08 pm

anges

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guess you guys are correct i am hoping for rs 10/= !

Antonym · 6 Re: CABO - Will they or won't they? Fri Jul 26, 2013 5:20 pm

Antonym

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anges wrote:guess you guys are correct i am hoping for rs 10/= !

It will be interesting to see how much dividend CABO declares next month. With a cash balance that must be in excess of Rs 34 per share, they definitely can afford to pay... Unless, of course, they decide to retain the cash (as RENU does) or reinvest it.

stocks hunter · 7 Re: CABO - Will they or won't they? Fri Jul 26, 2013 7:29 pm

stocks hunter

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But my view is they should pay at least Rs 10 dividend/share.

mind u they have not declared any bonuses for the last couple of years as well.

They should give back something to their share holders as well. it should be a win win situation for both parties.