LippoMalls Reit (LMIR) disappoints with lower dividend declared for 1Q12.
Assuming an investor has 50 lots as of close of year 2011. Its last done price on 30 Dec 2011 was $0.35 and it hit a high of $0.43 last week. If the entire 50 lots is sold off then this is 23% gain or $4,000 profit amount.
Every stock price will not forever go up or down.
So, when this 50 lots is sold off then it can be bought back later when its share price going lower again say, at $0.37-$0.38 depending on one's risk appetite.
If l project its full year dividend at $0.051 then this is still 36% lower then the capital gain 23% achieved. The capital gain is about 1.60 times (or years) of the annual dividend rate.
Is it not possible for this investor who have sold off his/her 50 lots to re-invest into LMIR within this 1.60 years at lower price than $0.43?
Every stock price will not forever go up or down.
So, when this 50 lots is sold off then it can be bought back later when its share price going lower again say, at $0.37-$0.38 depending on one's risk appetite.
If l project its full year dividend at $0.051 then this is still 36% lower then the capital gain 23% achieved. The capital gain is about 1.60 times (or years) of the annual dividend rate.
Is it not possible for this investor who have sold off his/her 50 lots to re-invest into LMIR within this 1.60 years at lower price than $0.43?
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