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I would agree that its a buy at this sp. However if you are relying on the dividend yield I would wait until the BOD comment on what the dividend policy will be. If they hold it at current levels (and they may do as historically there has been plenty of earnings cover for dividend payments in MAYG) then the yield will indeed be around 8% on the current sp. However it is possible they will cut the dividend, I guess it depends on what their revised forecast profit figure will be for the current year.

An article taken from Money AM: Reel in Cable profits News of stabilised markets at overseas telecoms group could prompt powerful rerating ========================== Buy Cable & Wireless Communications (CWC) ahead of a potentially significant rerating on confirmation that key markets are stabilising and cashflow concerns easing. The £860 million cap is likely to use its interims (8 Nov) to flag that operational problems in the Caribbean may be close to bottoming out. Meanwhile markets in Panama and Macau should show pockets of growth again. With telecoms reform now pushed through Jamaican parliament, the playing field has been levelled between Cable and its local rival Digicel. This will potentially provide 'one of the biggest growth opportunities' for the firm, say analysts at Execution Noble. The telecoms firm has been heavily promoting new business opportunities in Jamaica and has cut loose several low-margin contracts elsewhere across its operational portfolio as part of a rationalisation drive. Confirmation of progress in November could finally draw a line under many of the market's doubts over the group's recovery potential. It could also provide reassurance that future dividends, slashed earlier this year to 4¢ a share, are not under further threat.

That's the worst scenario I guess. Maybe they wanted the CEO out and used this to do it. The RNS was fairly specific about the problems only relating to a few specific areas of the business. I was interested that one analyst said he expected the year end profits to be 15% down on expectations, if that is the case then it is hardly catastrophic. They do need to find another CEO fairly sharpish though.

MAYG has always performed well, has a strong order book and plenty of cash. The company's angle is that there are two or three specific problems and the rest of the business is sound. The company has also acted decisively and sacked the CEO, and anyone who has had involvement in PLC management will confirm that is not an easy step to take. The real problem is once you have a profits warning it can take a while to build up credibility again, unless you get out there and talk to the City. We'll have to see on that one. I think the half year results are key now. Should get those at the end of this year. If the company is still profitable (although below expectations), maintaining dividends and looking strong for the future the share price will claw its way back. Otherwise there may be more pain to bear. For what its worth I think this will bounce back to £2 or more in time and it is a take over target at its current share price.

I echo your hopes. The reason I see it as a safe share is that (rather like CWW before Vod interest) the assets owned are worth several times more than its market cap. At present, even after the recent increase in sp, the whole company is only valued at £870 million. It has debt of about the same amount so its enterprise value is about £1.8 billion. It is worth much more than that for its infrastructure alone. The markets it operates in have limited exposure to the Eurozone which is no bad thing at present. I also like to see a director commit to his own company and Tony Rice spent well over a £million of his own money buying shares at prices well into the 30s. I bought these at 30p and the targeted 4 USC annual dividend at that sp gives a yield of about 8.5%, and for new investors its still over 7% at the current sp. The recent results suggest steady progress and, as you said on Thursday, slow and steady is good. That's especially what you need in a an investment yielding good dividends. All imho of course!

Not heard anything about the reason - but the increase was quite sharp towards the end of trading today. I bought quite a few of these a while back as a safe share with a good dividend, but any capital increase is also welcome!

Agree it isn't a complete disaster, still got plenty of cash and an order book worth £1.5 billion. The whole company now only has a market value of £90 million and that is less than when it floated - which is nonsense. If you have the patience you can make much more than 5-15% from these levels imho.

Correction it's 5.33 US Cents!

5 US Cents which translates to about 3.39 pence - and it is due to be paid 10th August.

You can invest in highly speculative oil shares etc (and I am!) but if you are looking for a buoyant defensive stock with some upside and one that also gives a good yield thislooks alright to me.

Sorry my post at 9.27 contains an error! Next years dividend will be 4 cents a share and not 8 cents. So the yield would be about 8% - still way better than a building society!

From the press release it says the final dividend will be paid on 10th August to shareholders on the register at the close of business on 1st June. Bear in mind that the that final dividend for 2011/2012 will be 5.33 US cents. It will be converted into sterling at the rate of exchange on 19th July. If the rate of exchange stays where it is now that is a yield of 11% for this one payment given the current share price. The board have said that in future full year dividends will be 8 US cents per share which would give an annual yield of 16% at 31p per share. These are fantastic returns when you consider what banks and building societies are offering for deposited cash!

Try this: http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?username=&ac=&csi=10032 If the link doesn't work it's from a website called digitallook and you can access a summary of recent financials there. The company's own website also has some detailed info. For what its worth I quite like this share, limited eurozone exposure, decent repeatable revenues and a cracking dividend yield (even if they cut the current dividend as is expected it will still be a good return).