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In the last 2 market days (16/17Nov), FJ bought back another 633 lots at $0.19/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [16Nov11]
http://info.sgx.com/webcorannc.nsf/Annou...endocument [17Nov11]
Todate, FJ has bought back a total of 5,932 lots, being held as treasury shares.
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Maybe they can allocate it as share employee scheme?
Most of the current SGX share buybacks are not cancel. Only notable one is from SIA.
Personally, I don't take a lot of indicating signal from share buyback, don't think they do indicate any cheapness in the company. Contrary, I prefer increasing of insider stake as it clearly shows them investing their own money into the company - though that alone can't be a clear indicator of value.
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I think company share buyback also can increase the stake of the substantial share holders but without forking out any of their own money. why would majority owner-manager increase their own stake with their own money rather than doing company share buyback?
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In the last 4 market days (18Nov through 23Nov), FJ bought back another 509 lots at $0.19/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [18Nov11]
http://info.sgx.com/webcorannc.nsf/Annou...endocument [21Nov11]
http://info.sgx.com/webcorannc.nsf/Annou...endocument [23Nov11]
Todate, FJ has bought back a total of 6,441,000 shares, or 4.97% of total issued shares.
A relevant question: What are the chances that FJ be soon privatized?
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Today (25Nov11), FJ managed to buy back a humongous 482 lots at an average price of $0.19068/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [25Nov11]
Todate, FJ has bought back a total of 6,923,000 shares, or 5.22% of the total issued shares.
Based on the last done share price of $0.19 and the remaining 122.709m outstanding issued shares, FJ's current market cap. is only $23.3m!
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(25-11-2011, 08:24 PM)dydx Wrote: Today (25Nov11), FJ managed to buy back a humongous 482 lots at an average price of $0.19068/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [25Nov11]
Todate, FJ has bought back a total of 6,923,000 shares, or 5.22% of the total issued shares.
Based on the last done share price of $0.19 and the remaining 122.709m outstanding issued shares, FJ's current market cap. is only $23.3m!
Sometimes i was thinking, if the shares is so good, why not the management or directors buy the shares using their own money, instead of using shareholders' money?
Buying using shareholders' money is like forcing the shareholders to own more of their shares, whether the shareholders willing or not. I would rather get dividend instead and later decide how should i spend it. It is my money anyway.
So somehow i am pretty neutral on share buyback. And don't think it is a very good sign in a way. Am i right?
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(28-11-2011, 03:19 PM)hongonn Wrote: Sometimes i was thinking, if the shares is so good, why not the management or directors buy the shares using their own money, instead of using shareholders' money?
Buying using shareholders' money is like forcing the shareholders to own more of their shares, whether the shareholders willing or not. I would rather get dividend instead and later decide how should i spend it. It is my money anyway.
So somehow i am pretty neutral on share buyback. And don't think it is a very good sign in a way. Am i right?
My 2 cents which I hope generates more discussion too since I think it's an interesting question.
Regarding the first point, I think the evaluation on whether management is doing the right thing should be weighed against what else they could do with Shareholders' monies - Buybacks vs. Dividends vs. Investing in Capex for growth etc. Management buying shares with their own money might inspire confidence but it certainly doesn't generate higher EPS since the no. of shares outstanding remains the same.
As for why it's not better to distribute dividends, I know in US literature, buybacks are preferred since there is the issue of taxes payable by the investor on dividends as opposed to buybacks.
For S'pore's case of the one-tier tax, am I also right to say that Dividends paid are also taxable just that the taxes are paid at the company level hence shareholders actually pay the tax but don't feel the pinch?
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A share buy-back mandate must be supported by the BOD and approved by the majority of shareholders, and implemented properly in accordance with the approved processes and rules.
Notwithstanding having the approval from shareholders, the BOD - especially the IDs - usually would be just support the implementation of share buy-back by the management, unless (1) the company or group has nett surplus cash; and (2) the market price of the shares are low enough to justify the company buying back shares in order to enhance the value of the remaining shares for the benefit of their holders. At the end of the day, a listed company buying back its own shares should be rightfully driven by economic benefits and the availability of surplus cash or cash flow, including impending surplus cash, within the company/group.
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Today (28Nov11), FJ bought back another 17 lots at $0.19/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
Todate, FJ has bought back a total of 6,940,000 shares, or 5.35% of the total issued shares.
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