YZJFH YANGZIJIANG FINANCIAL HOLDING LTD

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#81
(29-09-2022, 03:37 PM)CY09 Wrote: Then it would mean YZJFH does not have a clear buyback strategy.

Firstly, I notice the buyback volume has no pattern and is erratic. Second, the proportion of buybacks to trading volume has no pattern/ratio. Third during both up/down days, there are buybacks and at various price levels.

My sensing the recent level of lowered share buyback is due to the current buyback speed pushing them very quickly to the 10% mandate. The company may not want to hold a second EGM during the FY or cancel shares to continue utilisng its $200 million warchest

In my humble opinion, the strategy is clear. Buy in at a good price. If a crash happens and lowers prices further, then it’s even more earnings accretive. And I am afraid that’s not something that can be done mathematically. At most, a ceiling of say 25% of daily volume (just for example) can be in place. The remaining would be more day to day discretion.

From my perspective, it’s working great. They have bought back 5% of the company’s shares without pushing up share price. I hope they can buy back 50% of the company accumulatively at current prices. That would be insane! (And probably not much float left. Haha)

Please do your own due diligence. Any reliance on my posts is at your own risk.
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