Maxis Not Really A Good Dividend Share

Last year 2010 share holder of Maxis enjoy 30sen dividend and Maxis share price is moving from RM 5.10 to RM 5.40 so same only 30 sen up. Compare Axiata and Digi, Maxis is not a really good dividend payout share.

Maxis May Move Up Soon

Base on the chart Maxis share is about to move up soon after big fund accumulated enough share in hand. Share like Maxis unlikely to stand low price for long time soon sure it need to move higher if not all the call warrants will no business.

Maxis Buying Opportunity

After review out the financial report by end of Feb Maxis share is drop until yesterday and broken RM 5.30 leave. Last year during re-listing of Maxis most of the fund were remove from Axiata and buy into Maxis now the flow is reversed.

However due to the big fund flow out from Maxis, and now the price is below RM5.30 so it was a buying opportunity on this share. For me buying the mother share is too expensive so target Maxis warrants, Maxis have 4 call warrants.

Some said if the share have too many call warrants so the price may hard to go up, for Maxis case it since look like true so choice call warrants with longer expire date will be more save.

OSK And CIMB Issuer Out Total Of 4 Maxis Call Warrant

OSK and CIMB just issuer out total of 4 call warrants for Maxis. Maxis-CD is the longest expire date and also lowest exercise price at RM 4.80. Warrant issuer will make money when come to the expire date the warrant is out of money so all the money they get in warrant will be use to pull down the underlying share so I think due to this 4 warrants issued out, Maxis share is hard to go high in median term.

However in short term ( In this December ) the warrant may turn into a vary profitable tool due to the issuer need to sale their warrants so sure the price look profitable. Warrant is short term investment so due keep warrant for long, buy in fast when get profit sale it.

Normally new warrant will go high in few days before drop too vary low to bounds back so I think now still not the time yet to jump into Maxis warrants due to high premium.

MAXIS Will Re-listing Today

Maxis is re-listing today in Malaysia Share Market and tomorrow will be in FBM KLCI index so for FBM KLCI index hits 1,300 Maxis share need to be up. Most of the % share is hold by PNB, EPF and Tabung Haji so likely they will sale out the share by this week or next week using A sale to B, B sale to A to speculated the share price moving up.

You may see this activity by look into off market deal, however at end of the day how many share sale out to retail and foreign investor in the open market is the key point for Maxis share to go up more.

Base on the chart, FBM KLCI index is moving sideways and with the new member add in the index may have some momentum.

Broadband excitement

Broadband excitement

1. Excitement over wireless broadband, sparked by the launch of Digi’s maiden 3G services and Maxis’ iPhone plans.
2. Competition in the voice segment is more subdued.
3. TM is our top pick for committed 7% net dividend yield.

Digi launched 3G services. Its three plans are priced at RM58-188 a month without modems (which can be purchased separately). There is no commitment for the broadband services. Digi will focus on improving service quality, not growing subscriber base. This is the right strategy to build consumer confidence in Digi, and thus draw more customers.

Maxis’ iPhone 3G plan. We estimate that its low commitment voice plan of RM100/month is more attractive because the free minutes that come with it are for domestic calls only. IDD and international roaming as well as (basic) SMS are additional. However, the low-commitment plan creates a high
barrier because users have to pay RM1.5k-RM2.3k to purchase the handset.

Celcom is trying not to lose out by focusing on the Blackberry Storm, which we think is more of a business tool compared to the iPhone. It is the right move by Celcom to focus on the business/corporate segment instead of competing head-on with Digi and Maxis.

New prepaid plans are unattractive. Maxis’ new plans appear cheaper but it charges on larger blocks of 60-second vs. 30-seconds previously. Meanwhile, Celcom’s fine print states that other than the 15 regularly called numbers (at 12sen/minute), charges are very expensive (at 180-510 sen/minute),

Dividend (defensive) play. TM is our preferred pick in the Malaysian telco sector for its committed 20sen/share DPS or 7% net yield. Catalyst for rerating TM includes significant contracts for its HSBB. We also like Digi for its 5% dividend yield and strong
management, but we are concerned about the risk of Axiata’s net gearing rising again in view of its appetite for M&A.