Singapore Press Holdings (SPH)

[Stocker]

Company buy back share on 02/09/2019 : 377,100 shares at 1.92/1.94 .


https://links.sgx.com/1.0.0/corporate-an...d0ec3fb3df

[money]

It feels to me that the objective of the share buyback is to support the stock price and not because the company is undervalued by the market. This makes me question further the competence of management

[pencilin]

For those who likes property... just buy a property counter. SPH is a messed up rojak

What can be worse?
Bad business + Bad management = Worst of both worlds

SPH is hit by shift of people absorb news. Something they cannot control... Worse, govt put a lousy guy to lead.
It's probably holding up the price because it's an index stock. Pull it out of index, you see free fall like Starhub

[donmihaihai]

To be fair, SPH media business in term of profitability, still best all property listed co. In sgx in its sunset years. Ytd profitability still beat bank by a wide margin and in fact easily put it almost TOP 50 among the list co in sgx.

SPH media was so superb and produce wonder. Include their property business. Even now SPH is using media cash flow to pay dividend and grow other businesses. The moment this stop, bet really soon and SPH will become ordinary.

Look like the business of news is going to stay. No longer an extraordinary business but might still be a better than average business. Just that in a much smaller scale.

[Temperament]

Actually the most worrisome thing in buying a stock is asking myself will this company kaput in future?

No?

If O. K., then it shall be purchase able at the "correct buying price"

i always think buying well is more important then selling well.

Though selling well will make U so much more times money than just sell to make money lol.

Actually in a way, it doesn't matter what i buy.

Make money when i sell can liu.

Simple Simon tell me one.

YMMV.

[Stocker]

Share price should have factored in most of the negative issues by now, in fact the selling could be overdone .

[valueinvestor]

https://links.sgx.com/1.0.0/corporate-an...89416ad719

Bought again another 200k @1.93 . They should know what price to buy back than outsiders.

[Temperament]

Did SPH buy back at higher price in the recent past?

So was SINGPOST, SIA ENGINEERING, etc..

And did HYFLUX also did the same in the past?

Not so sure how to interpret "BUY BACKS".

I suppose there must be more than one reasons.

And why they may stop buying when prices really go down much lower?

They should be buying all the way down than take it private?

Your guess is as good as mine.

[dreamybear]

 They should know what price to buy back than outsiders.

Actually, I am not so sure about that anymore - I used to think companies engaged in share buybacks because mgmt felt that the shares are undervalued.

Recently, 
- HrnetGrp has also been buying back its shares
- Deutsche CEO Sewing invests a part of his salary in his bank's shares 
https://www.telegraph.co.uk/business/201...-troubled/

Does it mean Hrnet / Deutsche Bank(btw, has been hovering at all time low this year, even lower than GFC)  are worth investing now ?

I cannot foretell the future, but imho, not yet.

I think it's better for an investor to value the company shares himself / herself, whether by P/E, P/B, combination of metrics etc to determine whether it's over or undervalued. For SPH, other than tangible book value, I wld monitor its cash flow generation & level of debt carefully. If there are troubling doubts in calculating the value, may be good to consider avoid investing. Just my humble thoughts.  

[karlmarx]

https://links.sgx.com/1.0.0/corporate-an...89416ad719

Bought again another 200k @1.93 . They should know what price to buy back than outsiders.

Insiders, with access to all information, should have a better idea of where their company is heading, and hence whether their share price is fair/over/under valued.

But looking at its investment portfolio, SPH has not proven itself to be a very wise allocator of capital.

Their investment track record notwithstanding, an undervalued share price may not be why SPH is buying back its shares.

It is not inconceivable that management may be trying to prevent the decay of their corporate image, by shoring up the share price. I could be embarrassed if I were a corporate executive working for a company whose share price is rapidly falling, especially if I'm speaking to other executives whose company's share price is bubbling. 

Many companies, particularly those with a large number of (institutional) investors, bought back shares when their prices started falling. Sometimes, the move inspires market confidence, and the falling stops. Sometimes, it doesn't, but the company doesn't continue to buy back. Because, well, cash has to be conserved for the operating business. And companies with rapidly falling share price usually have  operating businesses which deteriorate at the same speed.

SPH spends a few hundred thousand each time to buy back shares. Given its many many millions, this can be considered a small 'marketing expense' if the move succeeds in stopping the price fall.

I should add, though, that a privatisation of SPH is not beyond the realm of possibility. After all, its public utility of distributing dividends, as a listed company, may have been mostly spent. Such a move would also allow management to focus on their (investment portfolio and media management) jobs, without being heckled by retail/institutional investors about falling dividends/share price.