Method results in wrong numbers, a continuation.
On Thu, May 8, 2008 at 1:09 PM, CHANITR CHARNCHAINARONG
Paul, here you go..... I hope this make some sense for you...yes I am busy but you are still my favourite analyst, fund manager, friend etc... :) ...this is from one of my staff whom I asked to find out and come out with the attached excel file... SET - Calculation Methodology P/E = Closed price X No.of listed shares Earning (Baht) for last 12 months Dividend Yield = Yearly Dividend Closed Price X No.of listed shares I’ve used the data, provided by SETSMART, to calculate the figure of P/E and Dividend Yield of TFUND by using the formulas above.
And I found that there is nothing wrong for the calculation of the number of P/E ratio and Dividend Yield, as you can see in the attached file with this email. ------------- He believes it is matter of methodology. Thanks krub,
And here is how I just answered back:
Dear K. Chanitr, thanks for your kind comments back. However on this, no matter how you slice/dice it, the TFUND does not and has never paid only 5.5% yield in yearly dividends. It always paid something like 8% -and recently closer to 7.7% only due to some price appreciation.
So no matter how the technocrats calculate it, or justify it through methodology the indicated/current/historical yield is simply wrongly reported there. And not just here but with other stocks as well. (The p/e stated is also off, as I just don't understand why times number of shares outstanding? What does number of shares outstanding have to do with a p/e or dividend yield?? )
This is unfortunate as longer term rational investors, the very ones the SET/MAI try to attract so get the wrong information from as we say in English "the horse's mouth". And its wrong.
That is just too bad as I truly care in the better development, not just marketing, of the SET/MAI.
Best Regards,
Paul Renaud
