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Taiwan Semiconductor Manufacturing Company Limited Message Board

  • billtrader69 billtrader69 Apr 18, 2000 4:46 PM Flag

    TSM stock dividend?

    I bought into TSM a couple days ago on my dad's
    recommendation (this is his industry of expertise). He told me
    that one of the benefits of TSM was that every year
    around August there is a "non-dilutive stock dividend",
    and that it is expected to be about 45% this year.

    Can anyone corroborate this


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    • What the hell is going on? all day, any site I go
      to it's "We wanna place a cookie on our server by
      the number #ooo555oooo555ooo etc. I am getting a
      zillion of these today. Then I get at least six (6)
      consecutiove windows asking me to allow a damn cookie
      What the hell is going on??? is this the IRS? the FBI?
      the Gore Campaign? The Bush campaign?>????

    • <EOM>

    • I'll bow out of this discussion. I made the
      reckless assumption that we were concerned with securities
      you, I or others who posted here could buy from any
      U.S. broker. I'll grant you that there are other stock
      exchanges around the world which have their own rules,
      laws, accounting rules and customs. Some of theses
      countries permit foreigners to buy local, ordinary shares,
      others do not.

      I for one do not feel the need to
      go to such markets and do the research necessary to
      overcome such differences. I will stick to the disclosure
      and accounting standards required here. I will also
      avoid direct currency risk, political risk and the
      hassel of custody and changing currency exchange rates
      among other things.

      I appologize for rashly
      assuming that posters were interested only in domestic
      securities and more specifically, what they could expect in
      respect to TSM. I do not have the expertise to conrtibute
      to a discussion of investing in non U.S. securities,
      nor do I have the time and desire to aquire that

      Thank you for your patience.


    • Dennis,

      A couple of points on what you've
      been talking about. First, stock dividends are
      dilutive to earnings. Generally speaking, that's what
      people mean by "dilutive" activities. Second, public
      companies in Taiwan issue stock bonuses to their employees.
      The simple reason for this is that it's really cheap
      to give huge bonuses. For proof, you can check out
      some comments in the Far Eastern Economic Journal on
      Asustek, you can also look at the dumping disputes between
      several Taiwanese IC companies and Micron.

      Looking at Asustek, they reportedly gave bonuses a few
      years ago equal to 5 years' salary to some folks. How
      could they afford that? Because their share price was
      in the NT$500 range, but they only had to "pay"
      NT$10 per share to give them to employees. Looking at
      the finance industry, it was hard for companies, like
      my former company, to entice people away from larger
      firms becaues the larger firms were listed on the OTC
      market. Being public give a company the ability to give
      large bonuses without hitting their cash reserves, by
      giving stock bonuses.

      Anyway, just a couple of


    • The total value of your stock will be the same
      before and after a split. The value of the split share
      will fall in proportion to the split, but you will
      have more shares.

      If you have a pie, you can
      cut it into as many pieces as you want, but it will
      still be one pie.

      A split sometimes brings the
      share price to levels people prefer.

      Hathaway (BRKA) has never split and was as high as
      $86,000. per share, out of reach for most people.


    • can be treat as stock split. There is no argumet
      here. You don't dilute in shares but stock is devalued
      due to more and more supplies unless stocks can trade
      higher volume as compared to pre-adjust. People own more
      shares after split and has tendency to sell extra
      shares. That results more supply than than demands. The
      price will deppreciate accordingly.

    • you can have a "non-dilutive stock
      dividend". The only way I can think of is to have the
      company buy back shares equal to the additional issued
      with the stock dividend. I doubt TSM is planning to do

    • True that TSM will give out stock dividend, but probably won't be 45% as your father said in ADR since Taiwan TSM only plan to give out 28% this year.


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