No one knows if a dividend is coming.
I’d feel more comfortable and less frustrated if the share price was less volatile but my interests are not managements thus I’ve never really been able to believe that a growth company in China would likely pay a dividend.
Dividend is usually not done in a high growth phase of a company’s development and it’s usually not done in China. Yes there are a few exceptions and CCME could become one of those but on the odds it’s much more likely not to be a divi payer IMO.
They were very slow to announce a buyback, and then, only until under extreme retail shareholder complaint and didn’t do any buying when the SP was so low. If they havn’t done any in this Q then forget about any promise to pay a divi. The stock price has looked after itself pretty well since then anyway.
They have been talking about a dividend since the SP lows and have had board meetings to discuss it since, now they are waiting for the next meeting to ‘discuss’ it, again.
Jacky is very obliging and responsive to shareholder concerns and when pressured basically fobs off with vague intimations eg. the board will discuss at next meeting, the board is seriously considering etc.
I’d love to be proved wrong but I believe, the company doesn’t want to pay a dividend.
A great accretive acquisition opportunity or similar could come at any time. I think they would rather keep their growth options open than worry about the short term share price.
Short term for management is until their last earn out shares are issued, then they should worry about the stock price and divi.
Zheng Chen built this company and with a moat by virtue of his astute entrepreneurial skills and government connections. He justifiably should put the growth of the company and his own interests before retail shareholders interests.
As value has pointed out, as a devout Buddhist Mr Chen is going to do nothing to reduce his merit and create negative karma. I regard this as important in terms of credibility as having Deloittes as auditor, as his beliefs are hard and fast and non negotiable – if he does harm to others he believes he harms himself - unlike some Christians here who change their views and spin, depending on their own financial self interest, can always repent later! or just let it slide.
I find it hard to believe some of the more visible and respected posters here, as it’s hard to know who is trading. I think there is a certain amount of spin especially at the highs and lows of sentiment – SP could go up 100% in a day – yeah right!
AI
