Share price touch my mid-term target in less than a month. The next question is whether the AEONCR share price can go up further to my longer term target price of RM5.00-RM5.50 ( refer to write up dated 19-4-20110).
Two possibilities:
1. Based on dividend payout of RM300 a year, with dividend yield of 5.5%, the share price can reach RM5.45. Institution investors and defensive investor will consider continue to buy AEONCR if they think AEONCR will follow AEON track records.
2. Potential bonus issue since its retained earning is sufficient to issue at least 1:1 bonus shares. With that AEONCR able to increase its paid up capital and for longer term objective AEONCR able to raise more capital with its enlarged capital base.
BACKGROUND - AEON (LISTED ON BURSA)
AEON listed someway year 2000 with share price range RM3.50-RM4.00.
Over 10 years, if you hold 1,000 share of AEON (investment amount RM4,000), with 2 round of bonus issue, now you are holding 4,000 share and the share price cureently trading at RM6.00 level (worth RM24,000). On top of that, AEON has been proved to be a GOOD dividend counters.
Will AEONCR follow AEON track record (Japanese owned companies)? Think about foreign owned companies business strategic :-
Make profit - must send back thru dividend payment.
Accumulated earning - capitalised the earning / asset value to enlarge its paid up capital base.
GOOD LUCK!
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