MNRB – Jewel to nothing!

It used to be my top holding where they are well managed, consistent profit and high dividend yield. However since a flood in Kelantan years ago. It has started to make loss and stop paying dividend until right issues.

We already started to sell off since a year ago gradually as we do not believe in a high income company but retained lots of income without paying back to its share holder.

Without solid reason, it has called for a right issue. If that’s the need of cash. They can easily budget some yearly profit as capital injection to reinvest into its business units.

Luckily we have been disposing since a year ago and left not more than 30% of our original holding. There is no need to do panic selling as the stock is still profitable. But it has then changed from our principal of selecting a stock.

We will continue to dispose when price stable further. We can holding until right issue but will likely selling off its right without going further.