When I saw the sharp drop in Asian Pay TV Trust (APTT) share price last night, I fainted. Boy, it was a whopping 50% drop in its share price overnight.
Checking it out, this drop was purely in response to their latest dividend guidance of 1.2 cents annually for 2019 and 2020. This “1.2 cents” is even less that the 1.625 cents dividend that they are paying every quarter now.
Looks like their cash situation and business outlook are much worse that what most people have imagined.
At 1.2 cents annual dividend and with a share price of only 16 cents, the dividend yield has dropped to 7%. For me, I think it would have to go above 10% for me to even start thinking of it.
While the management seems optimistic that situation will improve after 2020, I have completely lost my faith in them already. What can they and the board explain themselves out of this.
I think they could have managed the shareholders’ expectation better. I don’t think I am alone. Well I recognise that no one like bad news but it is worst to get a nasty surprise like that.
All investments involve risk of losing money. But it is still painful to see your capital halved by this … it is rubbing salt into the wounds.
Heartache I am but I don’t blame anyone except myself … it is another painful battle scar alongside Hyflux, Noble, Global Investment, S-Chips and earlier MY Clob shares. (Sign …. )
I hope those who have not suffered this setback will learn from our painful lessons.