Best World

Bestworld and fellow forumees, grateful if you can give your views on this counter. Sell, hold or even buy. Anything to look forward to this counter since it went ex-dividend recently.

Look forward to Q2 results. It\'s mid-May already, another 1.5 months of performance. This quarter they must improve on profitability, and I believe they will, cos Indonesia is going to turn around - I certainly hope so. Then also look forward to special dividend when they announced Q2 results, cos this is their 20th anniversary. They have $40 m in cash and every quarter the cash pile rises cos it\'s a highly cash-generative business. If they dont give a special dividend, I would say they dont deserve to be on anyone\'s radar screen. just my 2cents worth.

Have to look beyond Q2 to see any possibility of a turnaround. Short term, the only way to support the share price performance is to distribute the 39M CASH....or use them for share buyback. Continue to hold on to huge amount of cash and don\'t know what to do with them is not going to do any good to the share performance!

I just checked. This is their 20th anniversary. I believe it is reasonable to expect the Company to declare a special dividend given that they did not mention any major capex plans in 1Q2010 results. Yields at this price (assuming the same dividend payout) remain interesting.

\"did not mention any major capex plans in 1Q2010 results\" Does that means the plan is to continue to hold on to huge amount of cash and don\'t know what to do with them?

Hi bestworld, Honestly, I don\'t know what you are complaining about. Since IPO to date, this Company has delivered consistent dividend payout and profit has improved from a mere S$5m at IPO to around S$10m annually. They had a few bad years in 2008/2009 and 2010 is unlikely to be pretty too. I think that\'s granted in life. Business cannot grow in straight line. The most important thing I ask myself before I invest in any Company -- Does the management have high integrity? Can I trust the management to protect my interests as a minority shareholder? If you cannot even trust the croupier that you are playing against, to be fair. Then forget it. Just take the money and leave the gambling table. I have seen several CEOs of Singapore listed companies playing tricks to get the better of minority shareholders. These include issuing rights at low prices; injecting suspicious, non-related businesses into the listco; doing IPT at ridiculous prices. so did Best World do any of these? The answer is clear. If Best World pays out its entire cash coffers of S$40m as dividends today, you as a shareholder will just sell the shares tomorrow when the share price surged and praised yourself for being such a clever investor. BUT the management aka founders are still with the Company. So what\'s left of the Company? To the extreme of Best World, we have Starhub, who borrows money every year to pay its shareholders dividends. Just look at the interests payments that it incurred every year. So why is Starhub CEO doing this? For a simple reason that the dividends are \"Ah Gong\" money. Part of his KPIs probably include improving the ROE, shareholders\' returns etc... So giving good dividends by leveraging up, is a smart way to improve ROE overnight. Is it sustainable? I have no idea but I am not interested to find out. That\'s why I used their telecom services but never dare to touch their shares.