https://www.platts.com/latest-news/oil/dubai/libya-oil-output-drops-by-70000-100000-bd-after-26946523

https://www.platts.com/latest-news/oil/dubai/libya-oil-output-drops-by-70000-100000-bd-after-26946523

By Donovan【Qn: 大师，Hengyuan是提炼油公司，如果油价继续上涨，成本提高，盈利下降，股价应该下而不是上，对吗？】
最近很多人问了这种问题，我认为他们被其他人的妖言惑众给误导了，因此我用反问的方式来开导他们的智慧、训练他们的思考技巧：问题1- 假设这种妖言惑众的【逻辑】成立的话，那么，试想：2016年的年初至2017年的年尾，油价从每桶30美元上升到每桶60美元，恒源为什么股价从2元飙升到19元（8倍）？问题2- 现今，油价将从每桶60美元上升到我的目标价的每桶100美元至每桶120美元，也是近乎双倍，那么我的恒源目标价我只给19元的2倍（也就是恒源股价=38元）而没给8倍（恒源股价=152元），那请问，我的恒源目标价算是保守还是所谓的夸张？很显然，在金钱、价格的压力下，很多人是不理智的，他们被心理学上的锚定效应 (ANCHORING EFFECT) 愚弄了。

The Stock Is Undervalued
Another major reason why businesses repurchase their own shares is to take advantage of undervaluation. Stock can be undervalued for a number of reasons, often due to investors' inability to see past a business' short-term performance or sensationalist news items. If a stock is dramatically undervalued, the issuing company can repurchase some of its shares at this reduced price and then re-issue them once the market has corrected, thereby increasing its equity capital without issuing any additional shares.

Improve Financial Ratios & Boost Confidence
Buying back stock can also be an easy way to make a business look more attractive to investors. By reducing the number of outstanding shares, a company's earnings per share (EPS) ratio is automatically increased. Also, short-term investors often look to make quick money by investing in a company leading up to a scheduled buyback. The rapid influx of investors artificially inflates the stock's valuation and boosts the company's price to earnings ratio (P/E).

If a company is buying back shares, it can also be viewed by the market that management has enough confidence in the company to reinvest in itself. Investors typically see share buybacks as a positive sign that growth is likely to increase in the future. As a result, share buybacks can lead to a rush of investors buying the stock.

Share Repurchase Plans Can Be Easily Changed
Ideally, shareholders want a steady stream of increasing dividends from the company. And one of the goals of company executives is to maximize shareholder wealth. However, company executives must balance appeasing shareholders with staying nimble if the economy dips into a recession.

One of the hardest hit banks during the Great Recession was Bank of America Corporation (BAC). The bank has recovered nicely since then, but still has some work to do in getting back to its former glory. However, as of the end of 2017 Bank of America had bought back 509 million shares over the prior 12-month period and the bank plans to return over $17 billion to shareholders through share repurchases in 2018. Although the dividend has increased over the same period, the bank's executive management has consistently allocated more cash to share repurchases rather than dividends.

Why are buybacks favored over dividends? If the economy slows or dips into recession, the bank might be forced to cut its dividend to preserve cash. The result would undoubtedly lead to a sell-off in the stock. However, if the bank decided to buy back fewer shares, achieving the same preservation of capital as a dividend cut, the stock price would likely take less of a hit. Committing to dividend payouts with steady increases will certainly drive a company's stock higher, but the dividend strategy can be a double-edged sword for a company. In the event of a recession, share buybacks can be decreased more easily than dividends with a far less negative impact on the stock price. This is why companies like Bank of America favor buybacks versus dividends when it comes to boosting shareholder wealth.

Each share of common stock represents a small stake in the ownership of the issuing company, including the right to vote on company policy and financial decisions. If a business has a managing owner and one million shareholders, it actually has 1,000,001 owners. Companies issue shares to raise equity capital to fund expansion, but if there are no potential growth opportunities in sight, holding on to all that unused equity funding means sharing ownership for no good reason.

Shareholders demand returns on their investments in the form of dividends which is a cost of equity – so the business is essentially paying for the privilege of accessing funds it isn't using. Buying back some or all of the outstanding shares can be a simple way to pay off investors and reduce the overall cost of capital. For this reason, Walt Disney (DIS) reduced its number of outstanding shares in the market by buying back 73.8 million shares valued at $7.5 billion back in 2016.

Anyone can give sincere advice? Is good or no good with their proposal?

Oil price going to be green soon

I have noticed many ppl sapu when they throw. Just now 4mil, 2mil

I have sold ytd as i think hibiscus is more stable and safe. Just my opinion

No short selling today?

Today wc will fly

Oil price up 71.71 nice number

Oil price up 71.71 nice number

Again WC is stronger than mother lol

Sohcai TP at least RM1 and oil price anytime will go to $80. Just buy

World oil price going to be green soon yeah

I just can say WC is super strong haha

Must close at least 0.90 then towards $1 is very soon

I have faith that oil price will be $80 soon

No more contra player yo...

We r talking about future, only contra player can't wait

@miz raya bloom, finger crossed

My tp for wc is RM1. Bahvest WA highest RM1.11 y hibiscus cannot?

If war sapura will up la hello...

WC very strong

Crude Oil Stocks in US, UK, Singapore, Hong Kong, China and Malaysia are being snapped up fast. Again. Per all my fore-warnings. By Donovan

Crude Oil Stocks in US, UK, Singapore, Hong Kong, China and Malaysia are being snapped up fast. Again. Per all my fore-warnings. By Donovan

All play sapura coz is cheaper price. If sapura price over take hibiscus then this flower just will move i think.

Eventhough they have debts still but as a investor is look for the future, only short term player all will say it here dun buy or keep becoz they want to buy back.

WC shd be higher. Hopefully no more weak holder

Flower faster lo...sapura later take over

Today WC 0.39 or 0.40?

YY Lee your 2 balls are back? Kuku bird geng...

The real aim of Trump's action is to depress the USD effortlessly to stimulate the next phase of growth for the US.

https://donovan-ang.blogspot.my/2018/04/funds-flow-analysis-of-hengyuan.html?m=1

Y u put durian photos? Coz u lost 2 balls and safe kukubird? Use durian to replace temporary

They like 6.9, 6.99 and dun like 6.8, 6.88 already.

Haha where u lost your 2 ball, where to get it back.

Y warrant not really move? Ding...kuku bird spell on it pls YY Lee

Yes humble value is RM12

Jun Lim Ng, my wish is RM10 eventhough it is worth RM14

I am happy that Lee can safe his kuku becoz everyone is happy here

Support China, let the duck become roasted duck or beijing duck

https://www.thestreet.com/story/14542466/1/dow-futures-plunge-on-china-tariffs-5-things-you-must-know-before-the-market-opens-wednesday.html

U almost cut kuku bird

Lee Yih Yeong Don't create fear. This hengyuan is earning company. If below 6,I potong kuku bird
03/04/2018 08:06

Of coz i dun want to see that becoz we are on the same boat but operator just too cruel. If have karma, pls do something

Now see the operator wants someone to cut kuku or not? Haha if drop till 6

Ok thanks all