Mainstream
Magnum hit by a slew of bad news
Ng Wai Mun | 28 Jul 2017 00:30
The IRB has served Magnum a notice of assessment with regards to a RM477 mil penalty
Numbers forecasting lottery operator Magnum Bhd is looking less attractive, no thanks to a slew of negative news.
 
Investors are concerned over a potential tax penalty of RM476.4 mil being slapped on the company as well as sluggish earnings outlook and lower dividend payouts.
 
On a year-to-date basis, the stock is now down 21% to RM1.71 on July 27. The counter offers a dividend yield of 5% based on the current price.

Alliance DBS Research, vice-president of investment research Cheah King Yoong believes the share price decline is a combination of a few factors.

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