909 replies to this topic

[UpAnDdOwN]

WTF?

[Queen B]

CML touched the R83.00 mark again

Hopefully some momentum to go up further

[Perreby]

DY is usually calculated using the gross divi since tax treatment differs and so 4.16/82 is 5%
Secondly, everything is relative and the whole market is much more expensive so if you run a screen for divi stocks over 5% then there isn't much quality out there. So what are institutional investors to do when looking for yield? Property sure, but if they need to allocate to equities?

Yes DY can be calculated at gross.. But that's a fools way. As the investor should calculate what their actual/return is.. Hence after taxes. DY before dividend taxes were introduced was fine as the investor got the exact dividend paid out. These days investors should look at net when calculating the dividend yield. As the aim of dividend yield is to measure the return an investor is getting out from a company paying dividends. And as I said investors won't run up or support CML for a net 2.6%.. After effort and brokerage it's not worth the return.

And investing in CML based on lack of other 'quality' out there well I would rather sit on my hands than buying an expensive stock..

Edited by Perreby, 21 November 2013 - 09:33 PM.

[gamma]

Not sure where you got 5%

 

Its R4.16 gross dividend (so R3.52 after taxes). So that gives around 4.3% DY assuming R82 per share.. Compared to the almost 8% DY it was running at 12months ago. A 4.3% dividend (annual) is hardly show stopping stuff.

 

And I doubt the price will be supported by people chasing the latest dividend (R2.15 after taxes dividend or a dividend yield for the year end dividend of 2.6% ). Not worth the effort to buy an expensive stock plus pay brokerage etc for a mere 2.6% return. I dont think so

 

DY is usually calculated using the gross divi since tax treatment differs and so 4.16/82 is 5%

Secondly, everything is relative and the whole market is much more expensive so if you run a screen for divi stocks over 5% then there isn't much quality out there. So what are institutional investors to do when looking for yield? Property sure, but if they need to allocate to equities?

[HendrikB]

Stole this from my broker.
 
Suffice it to say then that the low hanging fruit of the market recovery has been plucked and that, on most metrics, including the 5.9% market cap/AUM ratio (2.5% is often regarded as generous) the stock is FULLY VALUED. Why not an outright sell? Well, the market is running and could conceivably do so for a year or two during which time the outcome could be better than that illustrated above. Meanwhile the dividend yield is also not to be sneezed at.
PEG ratio is 3.7

;)i know your broker. Read it this morning.

[orca]

Stole this from my broker.

 

Suffice it to say then that the low hanging fruit of the market recovery has been plucked and that, on most metrics, including the 5.9% market cap/AUM ratio (2.5% is often regarded as generous) the stock is FULLY VALUED. Why not an outright sell? Well, the market is running and could conceivably do so for a year or two during which time the outcome could be better than that illustrated above. Meanwhile the dividend yield is also not to be sneezed at.

PEG ratio is 3.7

[Perreby]

5% is not too shabby!
 

 

 

Not sure where you got 5%

 

Its R4.16 gross dividend (so R3.52 after taxes). So that gives around 4.3% DY assuming R82 per share.. Compared to the almost 8% DY it was running at 12months ago. A 4.3% dividend (annual) is hardly show stopping stuff.

 

And I doubt the price will be supported by people chasing the latest dividend (R2.15 after taxes dividend or a dividend yield for the year end dividend of 2.6% ). Not worth the effort to buy an expensive stock plus pay brokerage etc for a mere 2.6% return. I dont think so

[gamma]

What's more, calculate the yield on this divi alone
How many stocks with this rate of growth can compete?

5% is not too shabby!

[gamma]

5% is not too shabby!

Not really.. The DY ain't that great anymore.. Especially not at these priced.

[Perreby]

There'll be some buying pressure for the divi

Not really.. The DY ain't that great anymore.. Especially not at these priced.

[gamma]

Clawing its way back over the 83 mark. Hopefully heading back towards it previous highs

 

There'll be some buying pressure for the divi

[Queen B]

Clawing its way back over the 83 mark. Hopefully heading back towards it previous highs

[BBW]

When did this happen BBW?
If they are increasing their stake, then they still see potential growth
I decided yesterday to keep my full allotment of CML shares. Don't want to be kicking myself in a few months time :-)

Something @Richards_Karin posted on Twitter yesterday.

Edited by BBW, 20 November 2013 - 09:17 AM.

[gamma]

http://www.moneyweb....-gotten-too-big

 

This is why I like the company. Their leaders are very grounded. Another money manager would be blowing their horns as to how brilliant they are.

This right here is why I won't hesitate to keep buying them. 

 

It also helps that they are able temper market expectations and then over deliver.

 

Growth at 30% p.a. would be more than fine.

[Queen B]

http://www.moneyweb....-gotten-too-big

[Queen B]

Apparently Foord increased their stake in CML to over 5%; interpret as you like...

When did this happen BBW?
If they are increasing their stake, then they still see potential growth
I decided yesterday to keep my full allotment of CML shares. Don't want to be kicking myself in a few months time :-)

[BBW]

Apparently Foord increased their stake in CML to over 5%; interpret as you like...

Edited by BBW, 19 November 2013 - 05:32 PM.

[Queen B]

An updated valuation of CML - http://www.relativev....co.za/cml.html

Interesting valuation. All common sense says SELL

But this share is surprising and just keeps charging upward.

Decisions decisions......... Mmmmmmmm

[brendonfiddes]

An updated valuation of CML - http://www.relativev....co.za/cml.html

[orca]

Geez man. Anyone buying FGL after that run is a Kamikaze pilot.