Mercator Lines - Worth another look now - 10% yield

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[ZEN 26-10-2012]:

based in it's dividend paying policy since listing in Dec 2007
at current price , the yield is 10% . Or even at worst at about 8% yield
Worth to accumulate now . It can even beat all if not most of the REIT 's yield now
How did you arrive at the 10% yield at current price?

in 2008 , it paid dividend : SGD 0.0105 or 1.05cent
in 2009 , it paid : SGD 0.0116 or 1.116 cent
in 2010 , it paid : SGD 0.0116 or 1.116 cent
in 2011 , it paid SGD 0.0073 or 0.73cent
 
so based on those years , it did pay 10% yield at current price

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[ZEN 27-10-2012]:

in 2008 , it paid dividend : SGD 0.0105 or 1.05cent
in 2009 , it paid : SGD 0.0116 or 1.116 cent
in 2010 , it paid : SGD 0.0116 or 1.116 cent
in 2011 , it paid SGD 0.0073 or 0.73cent
 
so based on those years , it did pay 10% yield at current price
yes indeed for the period 2008-2010 they are paying 10% at current price but for this year dividend is only 0.2 cent. So the dividend is on a downward trend, how confident are you that they will recover back to those levels?

What we think is important is dividend growth, rather than just chasing dividends. Dividends are important because paying them disciplines the company.

Hi Zen,
I truly understand what NAV means.
My question is: Net Asset Value (NAV), what does Asset mean?
If you spent CAPEX of $100 million during peak to buy one vessel (which a new one costs only 10 million now), assuming you used Cash payment, then you moved $100 mil from Cash balance (Current Asset) to PPE (Non-Current Asset), so no changes in Balance Sheet. Every year you depreciate a bit by the expected life of the asset. Maybe now you still have $90 million in your balance sheet. This doesn't reflect the bad decision back then when it purchased at wrong time.
In normal accounting the difference will have to be written off, but because if it can generate cash flows and the total Present Value (PV) of the cash flow exceeds the book value of the vessel, you don't need to write it off. (This is like people who denied to admit they lost money in stock market, saying it still generates dividends, as long as I don't sell, I'm not making loss, and instead earning dividends, still better than putting the money in Bank!)
I'm just giving some perspective and kind notes, to warn people not to be too "shallow" in their analysis. I don't wish to see people get mislead by surface information.
No offense.[img]plugins/editors/jce/tiny_mce/plugins/emotions/img/smiley-wink.gif[/img]
Cheers.

paying dividend is always a bonus .
when a company becomes more profitable , naturally the dividend rate will go up also .
When it is doing not so well , dividend of course will be lesser
But i rather buy a stock that had hit rock bottom and well below it's NAV , and wait for business to become more profitable ; than buy a stock that had up 25-100% already , and even if it gives dividend , the yield will have dropped alot already compared to when you buy it cheap