Wednesday, December 29, 2010

Eurospan - Sell now or suffer later

Eurospan announced a special dividend of 40sen which goes ex on 6 Jan 2011. The special dividend is good for shareholders as the company's ROE is pathetic: 5% in 2009 and 1% in 2010.

Major shareholders are selling the shares aggressively, taking advantage of high share prices according to them (read the news in the edge).

Expect more selldown after dividend goes ex! Target price RM0.70.


"There is the plain fool, who does the wrong thing at all times everywhere, but there is also the Wall Street fool, who thinks he must trade all the time. No man can have adequate reasons for buying or selling stocks daily - or sufficient knowledge to make his play an intelligent play." - Jesse Livermore