Homepage
PR Newswire
As long as the company means its words and continue buying back shares, I think it is alright. What gives me a bit of worry is that it seems YZJFH is starting to slow down the pace of share buybacks relative to trading volume despite down days.
In terms of meeting the 10% share buyback mandate, YZJFH could cancel its purchased shares or hold a new EGM and it will never breach the 10% level until it utilises the $200 million warchest. Let's hope the company does this
Bluekelah is right that being a china listed company here means it falls in the S-chip branding. This is not good and to erase the stigma, YZJFH should be fulfilling its promise that its share buybacks acts as a price support mechanism. They have to do this, otherwise shareholders will start to doubt the mangement words like all other S-chips.
The procedure to keep buying backs shares is easy as what I have mentioned in Paragraph 2. The key is for the company to execute it.
What was unique today was that the sell down occurred at a few instances, which caused the share price to fall from 0.395 to 0.38 in less than an hour (it was not a one off block sell down but the selling persisted for over an hour). After all, YZJFH's claim was that its buyback is to support the share prices, however it seems what they were doing was ineffective and it turned out in today's share buyback announcement, they had bought less shares than usual when proportioning it to the trading volume. It was only until after 3pm that the bouts of sell down subsided
In terms of meeting the 10% share buyback mandate, YZJFH could cancel its purchased shares or hold a new EGM and it will never breach the 10% level until it utilises the $200 million warchest. Let's hope the company does this
Bluekelah is right that being a china listed company here means it falls in the S-chip branding. This is not good and to erase the stigma, YZJFH should be fulfilling its promise that its share buybacks acts as a price support mechanism. They have to do this, otherwise shareholders will start to doubt the mangement words like all other S-chips.
The procedure to keep buying backs shares is easy as what I have mentioned in Paragraph 2. The key is for the company to execute it.
What was unique today was that the sell down occurred at a few instances, which caused the share price to fall from 0.395 to 0.38 in less than an hour (it was not a one off block sell down but the selling persisted for over an hour). After all, YZJFH's claim was that its buyback is to support the share prices, however it seems what they were doing was ineffective and it turned out in today's share buyback announcement, they had bought less shares than usual when proportioning it to the trading volume. It was only until after 3pm that the bouts of sell down subsided