capital management

I guess the market might be skeptical with the company's capital management: large debt, generous dividend (although management expects 70% DRP participation) and the pursuit of acquisition while the free cashflow is in the red and the sector's outlook seems gloom. The profit for this FY is expected to be quite lower with the earning of water&fluid division reverts back to norm and the other divisions continue to struggle with margins.

I am holding on this one based on the belief that the management isn't as reckless as it might appear given the amount of stocks they have in the company and the expectation of a much higher cashflow this FY. But wouldn't be surprised by lower sp when the sector's condition deteriorates further.