Lasseters is going to release its FY04/05 result soon. As the only casino concept stock that is listed at SGX, its price performance was not encouraging since its IPO last year. It moved within a thin range of 22c - 27c. While its financial result is not bad according to FY03/04 and 1H of FY04/05, will it report a glaring result and declare a good dividend?
(1) Firstly, we saw one of the directors was keeping buying its share. This shows they wish to boost its share price.
(2) Secondly, please read what they said in last FY annual report:
As a newly-listed company, we intend to utilise our
internal funds and IPO proceeds for further expansion
and investments through mergers and acquisitions. Hence,
the Directors have decided not to declared dividends for
the financial period just ended.
However, we are mindful that as a growing company, a
fine balance has to be struck between retaining funds
for expansion and cash for dividend payout, depending
on the situations and opportunities.
Lasseters has acquired some stakes in many projects. So i believe they will declare dividend this year.
(3) Besides the negative goodwill, last FY they gained 1Ac per share. This FY they will make at least 2.5Ac per share. Let's assume it will declare 1Ac dividend, the return/investment ratio is 5.2% already.
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