Friday, December 10, 2010

Paramon -- update after 40 cent special dividend !!

Copy & paste from forum....

In fact, the announcement of 40 cents dividend could well be the first of many goodies that we could hope to receive.

First, Paramount might consider returning the balance proceeds estimated at another 60 cents per share to the shareholders in the event that there is no land acquisitions in sight within the next 6 months. This is the assurance given by Dato' CQ Teo, Executive Chairman of Paramount, made during the EGM.

Second, there could be plans to give out bonus issue in an effort to boost the liquidity of its shares, which could take place as early as next year.

Third, they are already in the midst of working out a strategic plan, which involve the future listing of their education business after its KDU College has recently received approval from MOHE to upgrade to University College status, hence further enhancing the value of Paramoung shares.

according to egm, if they dont find suitable land for property development, will pay out further 60sen in special div(from jerneh sales).

year end soon, another 30sen dividend possible!
and the valuation for their business is still low!!! so there is still value at current price. plus next year their international school is up! plus they just got university status.

plus according to dato a bonus issue might b coming soon!
so next year lots of development too in property arm, where this year super profits!!!

So, there could be more upside to the current market price if we can hold the stock long enough to reap its benefits.


Low PE, plenty cash in hand, growing profit, having resilient education business (which usually trades at double digit PE). I think any drop in share price present good opportunity to accumulate

1 comment:

  1. Hi KT,

    Seems doing well with your pick again. Well done mate. Do mind you share your thought on Ivory Properties and Tomypak ( was in your list earlier with steady dividen paid)