GREY:AIIFF - Post by User
Post by
ageeon Jun 10, 2011 4:31pm
437 Views
Post# 18701159
Happy to try again
Happy to try again | 500 | ARF.UN | buy | 19.99 |
| 800 | | buy | 15.80 |
| 900 | | buy | 15.31 |
| -900 | | sell | 18.49 |
| -1300 | | sell | 16.27 |
| 3000 | | buy | 4.45 |
| 3000 | | buy | 3.89 |
My advisor, (a former floor trader on the Singapore exchange) has been giving me a good sound lecture about yield investing. In his opinion dividend yield is totally irrelevant. Whether ARF pays a dividend or keeps the money on the book or pay down debt make no difference to the company’s value. If they make money all is good either way, if they don't it doesn't matter that they pay you a dividend. Yield investors are a little more likely to get sucker than value investor. ARF did a good thing cutting the dividend, I'm sure Phillips was surprised by the intensity of the reaction. I've been hearing about a div cut for months now. Did any of you thing that we would be under 4,00 on Monday?
This valuation makes no sense at all. I'm in again.