Star

Its dividend yield has stayed above 6% for the past seven months after the decline in its share price. The high yield compression is seen in companies that pay regular dividends.

he company saw the emergence of Aberdeen Asset Management Ltd as a new substantial shareholder with a stake of just over 5%. Other substantial shareholders such as the EPF and OCBC have divested their stakes. The EPF’s holdings fell to 46.38 million shares as at 17 June 2013 while OCBC shed about two million shares over the same period.

Star’s latest ambition is to transform itseof into an integrated media company and reckons the high dividend yield will limit downside risk, even as the company embarks on the ambitious plan.

Market observers expect adex to pick up now (June 2013) that the election is over.

Star’s online classified offering has been greatly boosted by its acquisition of 90% stake in Ocision Sdn Bhd.

However some cautious on print newspaper publishers due to continued weaker adex momentum to certain extent in the English newspaper segment was due to the ongoing print to digital migration trend.

Star has cash of rm435 million (59 sen per share) as at March 31 2013 and a net cash position of some rm174 million.

Another worrying factor is the perception of growing dissent against mainstream media due to the growing popularity of alternative new portals.

Star takes in tens of millions in dividends annually for MCA, but post election development have led to speculation that the party’s controlling 42.43% stake in Star may be up for sale should it decide to liquidate its assets.