Stocks that had no orders for 9 months suddenly increased by 40% after news of dividend payment 4 times higher than market price

Stocks that had no orders for 9 months suddenly increased by 40% after news of dividend payment 4 times higher than market price

Shares of 397 Joint Stock Company (stock code: BCB) have just increased by 40% on UPCoM after the company announced the closing of cash dividend rights at a rate of 29.19%.

Specifically, in the trading session on May 27, BCB increased by 40% from VND500 to VND700 when successfully matching 100 shares. This is not the first trading session of this stock on the stock market, but the reason BCB can increase by 40% is because the trading regulations allow stocks that have no liquidity for 25 consecutive sessions to be traded with a 40% amplitude on the next day.

Before this increase, BCB had been in a state of illiquidity for more than 9 months. The last time this stock recorded a successful order matching was in the first session of August 2023. At that time, BCB increased by 25% from 400 VND to 500 VND with a trading volume of only 100 shares.

After the increase on May 27, BCB kept the reference price of 700 VND but the trading volume increased dramatically. In the morning alone, 11,422 shares were changed hands.

BCB shares fluctuated strongly after the company announced the final payment of cash dividends at a rate of 29.19%, equivalent to VND2,919 per share. This means the dividend value is more than 4 times the market price of the stock. The record date for shareholders is May 30 and the expected payment is June 17. With 5.7 million shares currently trading on the UPCoM market, BCB plans to spend about VND16 billion to pay dividends.

This dividend level is lower than in 2023. At that time, the company paid a cash dividend of 37.5% and a stock bonus of 14%.

397 Joint Stock Company, formerly known as Coal Mining Team No. 1, was established in June 1996 under Dong Bac Company. The company was officially listed on UPCoM in October 2018. The company's main business is mining and collecting hard coal.

Last year, the company recorded revenue of VND1,509 billion and after-tax profit of nearly VND21 billion, not much different from the plan. This year, the company's management set a target of sharply decreasing revenue to VND940 billion and after-tax profit of VND20 billion. The expected dividend rate is 35.09%.  

Source: https://baodautu.vn/co-phieu-tung-9-thang-khong-khop-lenh-bat-ngo-tang-40-sau-tin-chia-co-tuc-gap-4-lan-thi-gia-d216205.html