Efficient and profitable, no dividend, low stock price. Investors mistakenly believe that the company's financial statements are fraudulent. No one dares to buy.
$CHINA OIL & GAS (00603.HK)$ If a company has profits and cash flow, it should give corresponding dividends to investors and reward them. This is basic logic. It is more appropriate to give shareholders cash dividends of 30-50% of the profits, taking into account the interests of shareholders and the investment and development of the company. Through dividends, the majority shareholders also obtain legitimate income and improve their own lives. Reasonable cash dividends can also raise the stock price to a reasonable level, which is beneficial to the company's image and development. If a company is profitable but does not return to investors for a long time, it is highly abnormal. Firstly, investors suspect that the company's financial statements are fraudulent. It doesn't make sense to have money but not distribute it. Secondly, they suspect that the majority shareholders are unlawfully taking over company assets. Are the majority shareholders ascetics? Where does their living expenses come from? Thirdly, by maintaining a low stock price for a long time, is the company not afraid of being maliciously acquired? If they are not afraid of malicious acquisition, it indicates that the company's financial statements are fake and the operation is fake. I hope the company can change this abnormal situation, change its mindset, and operate in a reasonable manner.
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