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5 comment(s). Last comment by i3gambler 2022-06-10 12:57


2,603 posts

Posted by arv18 > 2022-06-09 13:43 | Report Abuse

Teach them all a good lesson to simply pump shares with bonus issues, during the boom period.

Stop doing bonus issues. Too many shares, makes it very hard to liquidate in a thin market like Bursa.

They should be doing the opposite - share consolidation and cancellation.


2,834 posts

Posted by ks55 > 2022-06-09 17:33 | Report Abuse


Dec 2, 2020 7:57 PM | Report Abuse

What is the difference when come to SBB Parkson vs Top Glove?
Parkson started SBB from 6.70 (01.04.2008) all the way to 0.615 (31.01.2017) for whopping rm 2.1 billion.
Top Glove started SBB from 8.00 (04.09.2020) to 6.70 (02.12.2020) with lowest price paid 6.12 (10.09.2020).
Both companies were buying back everyday non-stop, and prices still drifting downwards non-stop.
Why SBB?
Why even with non-stop SBB (created artificial demand) but sellers keep coming?
Who are the sellers?
Why supplies exceed demands?
Simple logic of supply/demand equilibrium and you need not be an economist to understand that!

Note: Parkson has since sold all treasury shares at huge loses even at low of 19 sen.


2,834 posts

Posted by ks55 > 2022-06-09 17:35 | Report Abuse

Nov 25, 2020 10:27 AM | Report Abuse

12. Share Buy-backs are weakening the balance-sheets even of the most cash-rich firms.
Is Parkson really cash rich? How about 89.39m interest paid for 9 months on 2.49 billion borrowings? Since 2008, WC already used up 2.1 billion to buy back Parkson shares, otherwise he could have saved 75m on interest payment for 9 months.

13. Parkson share buy-back has become a kind of corporate cocaine that induces a temporary feeling of invincibility but masks weakness and vacuity. It has become a norm for any punter to buy by 4.30pm, then park to sell at 4.49pm. WC is going to pay these punters 'toll' to push up closing price everyday. He cannot stabilize Parkson share price with such tactic, but just draining the valuable cash.
Worst still it become clear for WC to commit suicide by drinking sea water in the ocean to quench thirst (飲鳩止渴).
Sooner or later Parkson is going to bleed to death.

14. Please don't tell me WC cannot understand the logical reasoning above. To me, he is paying peanuts to get monkeys to run his business empire -- from the very top to the sales personnel.
Don't believe, just go to any Parkson outlet to see what are the sales girls doing......

WC SBB amounts to about rm 2.1 billion, starting from around rm 6.70 to about rm 1.60. Now all the cash gone.

Top Glove start buy back its own share at around rm 8.00
Will the company spend spend rm 2 billion to prop up its share price?
Paid up capital in terms of number of shares outstanding is much bigger than Parkson. Can amount (say rm 2 billion) enough to stop its price to drift lower and lower each day?

How much Tan Sri Glove has bought back with SBB?
And the share price still falling?


690 posts

Posted by sensonic > 2022-06-09 19:51 |

Post removed.Why?


654 posts

Posted by i3gambler > 2022-06-10 12:57 | Report Abuse

When paying dividend, what happen to:
1) The company: An amount of cash money flowing out.
2) The shareholder: Receiving cash money.

When buying back shares, what happen to:
1) The company: An amount of cash money flowing out.
2) The shareholder: No change in number of shares but ownership become higher in term of percentage.

The case of TOPGLOV.
1) Spent 1.42b to buy back 200m shares over the 5 months span, or about 2.5% of total o/s shares.
2) If you hold 100,000 shares and you do not agree with the company on share buy back.
3) Then you could have sold 2.5% or 2500 shares and received around RM17,750.
4) That RM17,750 become kind of dividend, and you maintain the same ownership in term of percentage.

So, to me, Share Buy Back is kind of dividend payment.

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