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Williamson to pay 50/= interim

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Cde Monomotapa		#101 Posted : Saturday, February 11, 2012 9:34:25 PM
Rank: Chief Joined: 1/13/2011 Posts: 5,964
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guru267		#102 Posted : Saturday, February 11, 2012 10:20:18 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		stocksmaster wrote: Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'. @stocksmaster just some small corrections. The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid.. The board commented on financial not operating performance.. note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not.. Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance... Mark 12:29 Deuteronomy 4:16
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stocksmaster		#103 Posted : Saturday, February 11, 2012 10:36:54 PM
Rank: Member Joined: 9/26/2006 Posts: 463 Location: CENTRAL PROVINCE		guru267 wrote: stocksmaster wrote: Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'. @stocksmaster just some small corrections. The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid.. The board commented on financial not operating performance.. note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not.. Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance... Thank you for the correction...........from the Ksh 89 EPS for the half year, how much of that did the gains from disposal of Williamson House account for? Happy Hunting x handle: @stocksmaster79
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jerry		#104 Posted : Saturday, February 11, 2012 11:01:20 PM
Rank: Elder Joined: 9/29/2006 Posts: 2,570		Does @guru suggest/imply that a dividend is interim coz it hasn't been approved in an AGM? I've no doubt that the tea sector is minting money! The opposite of courage is not cowardice, it's conformity.
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jerry		#105 Posted : Saturday, February 11, 2012 11:06:48 PM
Rank: Elder Joined: 9/29/2006 Posts: 2,570		jerry wrote: Does @guru suggest/imply that a dividend is interim coz it hasn't been approved in an AGM? I've no doubt that the tea sector is minting money! ... can we also say that dividends cannot be paid unless they've been approved in an AGM? The opposite of courage is not cowardice, it's conformity.
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VituVingiSana		#106 Posted : Sunday, February 12, 2012 12:03:40 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi		stocksmaster wrote: guru267 wrote: stocksmaster wrote: Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'. @stocksmaster just some small corrections. The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid.. The board commented on financial not operating performance.. note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not.. Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance... Thank you for the correction...........from the Ksh 89 EPS for the half year, how much of that did the gains from disposal of Williamson House account for? Happy Hunting Sale price KES 450mn (for the 50% WTK owned) less expenses divided by 8.7mn shares = 50/- Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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mukiha		#107 Posted : Sunday, February 12, 2012 12:18:03 AM
Rank: Elder Joined: 6/27/2008 Posts: 4,114		VituVingiSana wrote: stocksmaster wrote: guru267 wrote: stocksmaster wrote: Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'. @stocksmaster just some small corrections. The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid.. The board commented on financial not operating performance.. note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not.. Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance... Thank you for the correction...........from the Ksh 89 EPS for the half year, how much of that did the gains from disposal of Williamson House account for? Happy Hunting Sale price KES 450mn (for the 50% WTK owned) less expenses divided by 8.7mn shares = 50/- So the 50bob might very well be from the sale of the house... If so, what does that spell for the future of the company? Generally, companies sell non-essential assets to invest the money in their core business. What does it mean for a company to sell an asset and dish out the cash as dividend to shareholders? Not very wise, is it? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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guru267		#108 Posted : Sunday, February 12, 2012 12:42:40 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		stocksmaster wrote: how much of that did the gains from disposal of Williamson House account for? @stocksmaster The 50bob dividend was paid out of proceeds from disposal and not from gains from disposal.. There is a huge difference between the two figures.. Gains from disposal was 144 million representing 16.5bob of the 89bob EPS so even if this is stripped out of earnings there was still an EPS of 73 from operations & biological assets which is still great by any means.. That said I do not think there is a change in the dividend policy of WTK yet otherwise we would see the same in its sister kapchorua with whom it shares identical dividend policy.. Mark 12:29 Deuteronomy 4:16
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stocksmaster		#109 Posted : Sunday, February 12, 2012 1:49:17 AM
Rank: Member Joined: 9/26/2006 Posts: 463 Location: CENTRAL PROVINCE		guru267 wrote: stocksmaster wrote: how much of that did the gains from disposal of Williamson House account for? @stocksmaster The 50bob dividend was paid out of proceeds from disposal and not from gains from disposal.. There is a huge difference between the two figures.. Gains from disposal was 144 million representing 16.5bob of the 89bob EPS so even if this is stripped out of earnings there was still an EPS of 73 from operations & biological assets which is still great by any means.. That said I do not think there is a change in the dividend policy of WTK yet otherwise we would see the same in its sister kapchorua with whom it shares identical dividend policy.. The Ksh 50 interim dividend seems to be interpreted by the majority of Wazuans to signify that WTK has paid out its entire cash reserves.....its good you have clarified that as at half year, WTK had generated Ksh 73 per share (discounting the gains from disposal of building) with a possible Ksh 120-140 by end of year. I estimate EPS from operations (less biological assets) for the year to be around Ksh 80. Unless the plan to buy more tea farms, a large portion of this money could be distributed to shareholders as transfering it to the reserves (already at Ksh 4.5B) doesn't make much sense. That is why, for the end year, i still expect an additional dividend of Ksh 20. (Put in another way:If what was distributed is the building proceeds then we are yet to touch the huge profits for the year). Happy Hunting x handle: @stocksmaster79
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guru267		#110 Posted : Sunday, February 12, 2012 9:02:55 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		stocksmaster wrote: That is why, for the end year, i still expect an additional dividend of Ksh 20. (Put in another way:If what was distributed is the building proceeds then we are yet to touch the huge profits for the year). Happy Hunting Yes here we agree.. I expect a full year EPS for WTK of 120-140 and 18-25 dividend in line with their normal policy.. I also expect a full year EPS for kapchoroua of 60-70 and a 12-15 dividend.. Hence I highly doubt they will change their dividend policy of below 20% of the EPS in 2012.. If we strip out the one off 50 bob dividend one will note that kapchorua is way cheaper than WTK by any metrics at current levels.. Mark 12:29 Deuteronomy 4:16
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Wazua » Investor » Stocks » Williamson to pay 50/= interim

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