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Received $1046 dividend on 14 sept for 20lots of the shares..but sold off the ex dividend shares at $1.17..anyone knows how the dividend is arrived at..is it tax free or the dividend received was net off tax at source..can anyone enlighten plse?
Don't worry. This counter will definitely go up to at least $1.20. I bought it at a average cost of $1.09. It just takes time. Anyway, treat it like a high yield fixed deposit. It gives out good dividend every year.
Mr. Pinnacle, I felt no consolation. I also bought it at 1.0. It's cheonging now. Patience is good.
Hey don't comfort each other now....stand up straight, look forward!
I made the mistake of waiting too long to decide to buy 2 weeks ago when the price is $0.88-89. Its all bcos I can't understand some of its products/holdings. Now the light looks clearer but the price have gone up 10%. Is it still a bargain? May kiv further.
To give you some consolation, I bought at $1.00.
But I never regret it and I believe its was and still is a bargain price.
I'm only looking to average down the price when opportunity arise to further improve my yield %.
I made several critical mistakes in August and I suffer heavy loss. So I turn conservative and missed it. Besides I sold it at a loss at 0.925. Psychologically, I just could not buy it at higher price. I still think I made the right decision. I just park the money at the wrong place. I should have keep the cash and watch it fall. Which mean waiting for lower price to enter. Now I am watching it rise and wait for it to drop. Ha Ha. If it now goes 1.2 all the way, then I am stupid.
If you are purely for trading to capitalise on price movement in ST, then you may have to wait a while (or maybe never again) for it to fall $0.90 again.
If you invest in this for the potential and high dividend return for LT, then this is a very good price to enter where you will still get around 11% dividend yield.
The basic knowledge of investment and trading is to buy on low and sell on high. But after been trading and investing for years, I know that its almost impossible to get the lowest and sell on the highest.
So wish you luck and happy waiting.
I was waiting to get back in on this one at 0.9, but I was afraid so I waited a day more to see how. Now is going up strongly. I think I will wait for the next fall.
OCBC Investment Research
Babcock & Brown Structured Finance Fund Ltd: Assured yield of more than 10% for 2008
Babcock & Brown Structured Finance Fund (BBSFF) suffered a severe beating following recent concerns over sub-prime woes in the US. We met up with management recently to get further clarity on this front, and management reiterated their announcement during their recent 2Q results, that is, they have no exposure to the US sub-prime market. Price of the listed fund fell from a recent high of S$1.26 (7 Jun 2007) to a recent low of S$0.865 (17 Aug 2007). With clarity in terms of guidance for 2008 payout, which was released for the first time recently, management is now working towards a payout of 10.2 cents for 2008. At this payout and based on yesterday?s closing price of S$0.93, BBSFF is offering an attractive yield of 11.0% based on 2008 payout. Riding on the strong name of the Babcock & Brown group in Australia, we believe that the managers are still actively seeking to improve the returns of the fund. It recently delivered a net profit after tax of S$21.8m for 1H07, and highlighted that it has not suffered any asset impairment. Current price level is also close to all time low and below the IPO price of S$1.06. For the 1H of 2007, management has paid out 4.7 cents and is guaranteeing 5.5 cents for 2H07, giving a full year payout of 10.2 cents or yield of 11.0%.
Phillip Securities Research - BUY
Fair Value S$1.23
BBSFF annouced on 31 August the full divestment of its investment in the biofuel industry with the sale of North American Biofuels Loan facility. The sale was transacted at par with receipt of approximately US$340K representing capitalised deferred interest. We took the opportunity to update BBSFF?s investment portfolio to fully reflect the upcoming transactions as announced by the Manager during their recent first half 2007 results briefing. In addition, we performed a simple stress test on the portfolio to the effects of various loss rates to the securitisd assets. The purpose is to allow investors better understanding into this part of the investment.
Borrowings. BBSFF has a corporate debt facility of S$177.5m. According to regulations, BBSFF may not exceed a maximum gearing of 35%. Including any limited recourse debt, BBSFF has a financial covenant of 50% gearing.
Valuation. We updated the investment portfolio to better reflect the potential upcoming transactions. For our valuation model, we adjusted our earnings estimate and also raised our cost of capital assumption so as to build a more robust model and to reflect the higher risk adversity shown by the market recently. Our revised assumptions give us a fair value of $1.23. We maintain our view that at the current price of $0.93, BBSFF offers a very attractive yield of 11% based on the dividend guidance of 10.2 cents. Rationale of the recent sale fortified our view of the Manager?s strategy of active capital structure management and active portfolio management. The sale will free up capital to fund higher yielding investment so as to achieve a more efficient capital structure and add more value to shareholders. Our analysis exercise of the securitised assets is purely from a technical point of view which we do not believe will occur, as the Manager has already issued a dividend guidance of 10.2 cents. If the investments perform according to our estimates, we can even expect a higher payout from the revenue stream.
Another announcement of director increasing stakes. Looks like at current prices it's worth a try with >10% dividends.
http://info.sgx.com/webcorannc.nsf/560dd4b031b97d27482571b20043d38c/1713ac85c7cd20974825734b00043de8?OpenDocument
Yeah, maybe its right to sell it off. The best idea of bio fuel is transfer farm waste to energy but there is still no break through on this. Bio fuel is workable because of government tax rebate and high oil price. If oil price fall, I think bio fuel would be expensive.
BBSFF SELLS INTEREST IN NORTH AMERICAN BIOFUELS LOAN FACILITY
Babcock & Brown Structured Finance Fund Limited ("BBSFF" or "the Company") today announced that it has sold its interest in the North American Biofuels Loan Facility Agreement at par (that is, US$20 million) plus accrued interest, including deferred interest. This has resulted in the receipt of approximately US$340,000 representing capitalised deferred interest, which was not expected to be received in the 2007 financial year from the investment.
The sale completes BBSFF?s divestment of its investments in the biofuels industry. In each case, the originally expected economic return was received at the time of divestment.
The proceeds of the sale will be used to invest in one or more opportunities currently under consideration, an investment being expected shortly.
The sale does not adversely affect the second half 2007 dividend guidance, nor does it adversely affect the 2008 dividend guidance provided on 14 August 2007 of at least 10.2 Singapore cents per share.
After the sale:
- BBSFF?s assets will be invested across its three asset classes in the following proportions:
Operating Lease Assets: 29%;
Loan Portfolio and Securitisation assets: 47%; and
Alternative Assets: 24%.
- 64% of the 2008 Dividend Guidance amount of 10.2 Singapore cents per share is contracted income;
- Over 85% of the 2008 Dividend Guidance amount of 10.2 Singapore cents per share has been hedged into Singapore dollars.
Fairygal - You are right dividends only out in Dec 07 earlies. I saw wrongly. The upcoming one in Sep 07 is for last the bout of results.
francisd - Went through some releases last night from BBSF. So far they have refuted any suggestions of exposure to subprime and provided quite good info for investors too. But your advice is still sound, must do thorough homework before taking the plunge. Cheers!
Hi guys, yes this is a highly recommended high dividend counter. But have to checked out their exposure to the recent sub-prime loan woes. So far they have not come out with any announ. since I believe they have some exposure as per their operations. Find out first, before it is too late. Cheers.
Divvy not due till Dec. Many many moons to go......
Some catalyst to push the prices. Open market purchase by director on Fri. With dividends coming soon this baby may be on its way up.
Alas there's no broad market buy signal yet. Not vested ...
Wah this MacCookPSF sure solid! No seller at all, only one bid for 1 lot at 1.30. How to accumulate?
Kind to share your experience on this one to shorten my learning curve?
No problem.
I have another highly recommended high dividend counter.
MacCookPSF. This one very stable. Price seldom move down. But sometimes move up!!
Thank you v much
Pinnacle for taking the trouble to scoop out these info for us. I have also read the DBS report yesterday and SGX posting of its FY report. But unfortunately due to my low IQ, can't fully understand its product. However, looking at its attractive yield, I will continue to KIV this counter and when I begin to understand more and feel confident, I will then invest.