TDM Bhd - Dividends Don't Lie?

TDM Bhd (Current Price RM1.85) which involve in Plantation and Healthcare business declared a final dividends of 4 sen per ordinary share less 25% and 9 sen per ordinary share tax-exempted which still subject to Board approvals.
Just for information, TDM have a dividend policy statement of paying out at least 30% of its consolidated annual net profit which was approved on 12th April 2009. (you can refer to TDM website).
I am firm believer of Dividends Don’t Lie, but it should not be the only yardstick of stock selection. Understanding the business, balance sheet and their earnings should remain the main priority.

Some comments on this company by the readers for reference.

Healthcare business

Source: Data from KPJ AR2008

 Source: Data from TDM website and Q409 report

Source: TDM Q409 report

Not for comparison between both companies but to show the increase percentage of number of patients year-on-year.

I would like to add in the chart of healthcare cost in Malaysia but not able to locate it thus far. Please email to me if you have any for me to upload it.

Meaning of Deferred Revenue

Have you come across the term 'deferred revenue' in liabilities column of a company's balance sheet?
Here is the meaning,

What Does Deferred Revenue Mean?
A liability account used to collect deposits and other cash receipts prior to the completion of the sale. 

Investopedia explains Deferred Revenue
Deferred revenue is important because it's the money a company collects before it actually delivers a product. For example, a software company sells and receives payment for a computer program before it gets delivered or installed. This doesn't get recorded as straight revenue because, if something goes wrong with the job, the money is at risk.

Source: Investopedia.com

If you have any terms that you do not understand, you can almost able to look for it in Investopedia (Great site)

KJMC and TDM Bhd

Anyone who pass through Kelana Jaya via LDP should notice that there is one community hospital situated at the side of the highway called Kelana Jaya Medical Centre (KJMC). As I am visiting my friend today, I found out that KJMC actually belongs to a Public Listed company called TDM Bhd.
A check on the website of the TDM Bhd shows that the company actually having core business in Plantation and Healthcare. A quick glance through its latest quarterly report reveals that the earning is impressive and a healthy Balance Sheet. Need some time to digest the reports and get more information on this company. Keep in view.

Biofuel to be Mandatory?

Came across the news on biofuel from The Star yesterday. Which company will benefit from the implementation?

Mandatory sale of biofuel to start June next year

By WANI MUTHIAH

BANTING: The mandatory sale of biofuel will be implemented in the central region from June next year.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok, who said this, added that the mandatory sale would be implemented in phases beginning in Kuala Lumpur, Selangor, Putrajaya, Negri Sembilan and Malacca, and the southern, western and northern parts of Perak, Pahang and Johor.
The implementation was part of the Government’s biofuel initiative under the B5 Programme, with bio-fuel derived from blending 5% palm methyl ester with 95% diesel.
Dompok, who launched Sime Darby Bhd’s biodiesel fuel Bio-N and visited its biofuel plant in Carey Island on Wednesday, said petroleum companies had requested for some time before the implementation.
“They needed time to plan their facilities and capital expenditure,” said Dompok, adding that the Government would pay for the setting-up of biodiesel blending facilities at six petroleum depots in the central region.
The depots, which would be fitted with in-line blending facilities, would be located in Port Klang, the Klang Valley Distribution Terminal (KVDT) in Selangor, Port Dickson, Negri Sembilan and in Tangga Batu, Malacca.
An allocation of RM43.1mil would be made available for this purpose, Dompok said.
Dompok said that the price of biofuel would fluctuate according to the market price of crude palm oil and diesel.
“If there’s an increase in diesel price, it would be borne by the oil companies. They have agreed to take it on as operational expenditure,” said Dompok.
Earlier in his speech, the minister said the Government had released the National Biofuel Policy in March 2006 in line with global developments that saw nations pursuing aggressive agendas on the production and use of biofuels to reduce dependence on fossil fuels.
The policy outlined five strategic thrusts, namely the use of biofuel for transport and industry, production of biofuel for export, development of indigenous technologies and biofuels for a cleaner environment.

Clarification

After receiving two emails asking about stock recommendation/advice, I think I need to clarify again that I am not a professionally-trained investment adviser. I am in no position to advise anyone about any stocks. Please seek advice from your professional investment adviser.
Furthermore, there are a lot of books about stock investment that you can get from any bookstores. You could even get information through many good blogs around about stock investment.

I just wonder why would anyone asking for stock recommendation from stranger?

There will be some changes to the way I blog. I will remove the simulation portfolio as well. My mistake perhaps as I am still new to blogging.

Good Sign for KFima

When the largest shareholder accumulating the share, it is normally presume that the share is undervalue.
What do you think?