ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: Boustead Singapore
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
It wasn't the Boustead shareholders who weren't panicky but the company was providing support for the share price.

They bought 3,964,000 shares today.
(03-10-2012, 05:59 PM)dzwm87 Wrote: [ -> ]It wasn't the Boustead shareholders who weren't panicky but the company was providing support for the share price.

They bought 3,964,000 shares today.

Thanks just saw that.

Boustead now has 16.456 million treasury shares at an average cost of 63.61 cents/share. This is the highest price they've paid so far to buy back shares (95c), so this may be an indication of better things to come? Huh
Or it could be just entering the market to support the price. After all, they have quite an amount of net cash?
(03-10-2012, 06:16 PM)dzwm87 Wrote: [ -> ]Or it could be just entering the market to support the price. After all, they have quite an amount of net cash?

Just did a quick check. Boustead had $146.7 million of net cash as at 1Q 2012 (ended June 30, 2012). So yeah, could be that they are just deploying it to reduce the issued share cap. This also means less future money spent on dividends on that 3.9 million shares (about $195,000 saved). Tongue
My two cents worth - I don't think the lawsuit will go very far for the following reasons:

1. The lawsuit is filed in the Singapore courts - not in Libya

2. The Singapore courts had already approved an injunction against the Libyan bank sending the money out.

3. The reason for the break of the guarantee (force majeur) is normal when a country goes through a change in government

If the shares drop a lot on this fear, it would be a nice buying opportunity. Boustead has a nice portfolio of industrial property, whose value has been going up a lot ever since the government stopped giving out 30+30 year industrial leases.

full disclosure: I have been a longstanding shareholder of Boustead and have enjoyed lots of dividends over the years
Pay $3M + for stock buy back... not very wise to me...

(03-10-2012, 05:59 PM)dzwm87 Wrote: [ -> ]It wasn't the Boustead shareholders who weren't panicky but the company was providing support for the share price.

They bought 3,964,000 shares today.
(05-10-2012, 11:20 AM)Contrarian Wrote: [ -> ]Pay $3M + for stock buy back... not very wise to me...

What should they have done better with the cash, then? Any thoughts?
(05-10-2012, 11:26 AM)Musicwhiz Wrote: [ -> ]
(05-10-2012, 11:20 AM)Contrarian Wrote: [ -> ]Pay $3M + for stock buy back... not very wise to me...

What should they have done better with the cash, then? Any thoughts?

The interesting writing on share buyback by Legg Mason:
http://lmcm.com/908178.pdf

About buying back share makes more sense than, say M&A.
If the management cant evaluate their own business, it is too tall an order to expect them to evaluate other business.

Quote:All roads to managerial evaluation lead back to CAPITAL ALLOCATION.
(05-10-2012, 11:26 AM)Musicwhiz Wrote: [ -> ]
(05-10-2012, 11:20 AM)Contrarian Wrote: [ -> ]Pay $3M + for stock buy back... not very wise to me...

What should they have done better with the cash, then? Any thoughts?

how about paying it out as dividends?! Smile
as long as the it doesnt impact operating cashflow and the guy isnt anywhere nearer to WB, I thought paying out 'excess cash' as dividends is the wiser move than share buyback.
Giving out dividends, mgmt or employees with stock options cannot get it.
I would support special dividends if they have excess cash to do buyback.