Future Destiny of STAR with MCA

Star: It currently (May 2013) offers the highest net dividend yield of 6.9% in the sector now that it is sustainable and backed by its strong operating cash flow as well as balance sheet with a net cash position.

However, it might be slightly affected by a boycott. The Star newspapers’ readers are largely the English educated kind who are concentrated in th

Circulation is important to Star as its earnings are derived largely from its newspapers.

The Star newspaper was once the most widely circulated English daily in Malaysia with more than 300000 copies distributed at one time. However, its circulation has dropped in 1H2012.

Investors can expect some uncertainty at the company for MCA is its major shareholder with a 42.45% stake. If Datuk Seri Chua Soi Lek steps down as MCA president, who will lead the company? Historically every time there was a change in MCA’s leadership, there were changes in the company. Secondly, will MCA make changes to its shareholding?

e urban areas where there is strong support for the opposition.