Duty Free International

divads27, do you feel like getting back into Duty Free? The insider buying is sending a strong signal. Yesterday, the company bought back 102,000 shares at 43 cents. And earlier, the Independent Dir Chew bought the warrants (!!!) --- nobody buys warrants of an illiquid stock unless he expects a big payout ahead.

The buyback is good if it is sustained. Let see whether this is so. But there are disadvantages

1) As I pointed out previously, this time round, they never declare any dividend, as the money is used for buyback. So, up to individual, some like to have dividend while some like the company to buyback to support the share price. But if bear market comes, then I think buyback serves little purpose.

2) As they buyback, the shares become more and more illiquid.

I am still waiting for the confirmation of the sale of JB Zon, supposed to be completed by 18 March this year. See how are they going to do with the proceeds from the sale.


Lately, I into Chip Eng Seng I think Chip has a better prospect than Duty so nowadays seldom follow Duty free news.

I post a message on Chip Eng Seng:

forum.channelnewsasia.com/showthread.php...TOP-in-2013-and-2014

Duty Free earned 4.82 rm cents in 9m of current financial year, and by annualising, the EPS will be 6.4 rm cents.

Based on EPS of 2.7 SGD cents & 43 cents stock price, the PE is about 16X. I think this is fair for this business.

Then why the strong insider buying and the share buyback? The reason could be a special dividend payout that is coming after the disposal of assets in Johor. Based on announcements in the past, the completion of the deal is 17 March 2013 -- final date. Let's wait for the next announcement.

The sale of JB Zon and even the special dividend is already discounted, everyone is expecting that. What important is what do they do with the money and the rental rate they are leasing from Berjaya JB Zon for their duty free business.

Of course there are always the last minute risk that the deal may be called off due to unforeseen circumstances.

Shd wait and see ..

With the sale of The Zon completed about a week ago, the thing to weigh is the special dividend. In the 1st place, will have special or not? Next month, the full year results will be released. We will know the answer then but this company's track record is one of paying dividends generously. After all, the controlling shareholder, Atlan Holdings, owns 80+% of the company.

Garl!! I finally decided to create an account. I am Alex, been posting on the forums about Dutyfree.

Remb I sold all at 0.48. Recently I bought back 20 lots at 0.425. I have not sell yet still holding. Today surprise got 20 lots at 0.445 seems like an anomaly.

My family holdings of dutyfree as of now (left, we sold 95% liao):
47 lots at 0.305
20 lots at 0.425

When is the results are?? I think will have normal dividend but not special dividend? unless they include land deal in current financial year???