This is not anything new, as they have already announce the intention during the full year results. Even if it's an announcement out of the blue, such announcement should not cause any heavy selling? Also why didn't SGX query? Although the standard answer is always we are not aware of any material info. Observer2 or anyone has any inking what might be going on?
Hi danzing87: The key shareholder to ask your question is the chairman. Will he take cash dividend or scrip ? Are you going to the AGM? Anyone who goes to the AGM should not let the opportunity slip by to ask the chairman this question openly. If he says he will take scrip, it is a very good sign that the business prospects are good and there is no accounting skeletons to worry about. If he says he will take cash, oh-oh..... I would be worried.
There is a recent article on the dividend [url=http://www.nextinsight.net
/story-archive-mainmenu-60/912-2011/4374-qingmei-]QINGMEI: Fast-growing S-chip with high 13% dividend yield[/url]
Qingmei has been fluctuating between the range of 17.5 cts and 21 cts since June 2011. Its share price has been holding up rather well against the market meltdown over the past few weeks. I believe the large married deal yesterday could have come from someone who needed to raise cash. In a bearish market, desperate sellers selling any sizeable quantity of their shares, would usually have to do it at a discount to the market price for lack of buyers. As S-chips are out-of-favour with most people, any unusual drop in share price can easily make many retailers panicky as to join in the selling. Unless we have inside information, we will not know the truth.
The issue of script dividends is nothing new and is being done by many companies. This is an OPTION given to shareholders to receive their dividends in cash or in script. I do not see this as a negative point for the company or the shareholders.
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[greenrookie 06-10-2011]:
This is not anything new, as they have already announce the intention during the full year results. Even if it's an announcement out of the blue, such announcement should not cause any heavy selling? Also why didn't SGX query? Although the standard answer is always we are not aware of any material info. Observer2 or anyone has any inking what might be going on?
Qingmei has announcced that its chairman sold 23 m shares at 16.8 c.
by my estimate, he is going to collect abt S$3.8 million. Qingmei also announced that for dividend, the man (did he read this forum?) is going to opt for scrip. by my est, he is just giving up S$575,000. In other words, he is net net exiting. However, the % stake sale is not major. Overall, nothing alarming to me. What u other guys think?
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