The Hour Glass

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(19-06-2021, 02:31 PM)dydx Wrote: Last year's share buy back at low, low prices have helped in raising EPS and NAV/share.
This year's share buy back so far at record high prices will help raise future EPS, but may have a small short-term dampening impact on NAV/share.

In general, share buy back will also reduce free-float shares and the number of minority shareholders, especially when carried out at record high prices.

The number of shares purchased to date is about 2M. With 700M shares outstanding, the impact to EPS or NAV would be very very negligible.

What would be more interesting is what is the Board/Family's motivation to conduct the share buybacks:
  • To raise EPS, NAV and share price? Perhaps, maybe? But for so many years, the company has never placed too much interest in promoting its share price;
  • Or at current price level, it just looks like a good investment? If going forward the company is going to pay 6cts dividends per year, at $1.40, its a return of 4.3%. Rather than keeping $10M in fixed deposits earning 1%, why not let the company 'earn' 4.3% by using $10M to do share buybacks at $1.40?
    - $10M in FD (at 1%), the company earns S$100,000.- $10M in buybacks (at $1.40), the company avoids paying $400,000
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(20-06-2021, 10:25 AM)Choon Wrote: What would be more interesting is what is the Board/Family's motivation to conduct the share buybacks:
  • To raise EPS, NAV and share price? Perhaps, maybe? But for so many years, the company has never placed too much interest in promoting its share price;
  • Or at current price level, it just looks like a good investment? If going forward the company is going to pay 6cts dividends per year, at $1.40, its a return of 4.3%. Rather than keeping $10M in fixed deposits earning 1%, why not let the company 'earn' 4.3% by using $10M to do share buybacks at $1.40?
    - $10M in FD (at 1%), the company earns S$100,000.- $10M in buybacks (at $1.40), the company avoids paying $400,000

I guess sometimes strategic considerations in business or corporate actions cannot be easily understood or described in words and numbers beforehand..
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What good does it do for the company if the share prices are going up due to company share buy-backs?

1. To invest in themselves?
2. Theoretically buybacks tend to improve valuations of companies
3. Company can signal that the stock is undervalued
4. It can help the promoters to consolidate their stake in the company

What will fidelity funds (9.5%) do is also an important point to consider, Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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Today's share buy-back - 4th day in a row! - at an average price close to $1.38, is not a small one..
https://links.sgx.com/1.0.0/corporate-an...9151284c73
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21 Jun 2021 - Share buyback continues. Tabulation attached.


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23 Jun 2021 - After one day break on 22Jun, share buyback continues. Tabulation attached.


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Rainbow 
AGS @ 146
published on 7th June 2021, only available in Mandarin.
Enjoy:


Stay home and stay safe, everyone.
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(24-06-2021, 07:31 AM)Choon Wrote: 23 Jun 2021 - After one day break on 22Jun, share buyback continues. Tabulation attached.

24 Jun 2021 - Share buyback continues. Tabulation attached.

Based on company's buyback volumes and total traded volumes for the day, there seems to be an active competition between company and the market.


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25 June - Buyback continues.


The price at which the company is buying back shares has increased significantly from when it first started this year ($1.50 vs $1.33).

Even so, the company is not slowing down on its share buyback. 

   
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Share Buy Back Mandate for The Hour Glass is around 70 million shares, so, I guess there will be a long way to go for them to come close to exhausting or fulfilling that mandate.
Disclaimer :-

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures
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