The company aggressively buying back their shares at 78-89.5sen shows that the management opined the current share price is way undervalued and worth buying back. With MITI allowing more industries to reopen, JHM as a supplier of automobile/aerospace LEDs will definitely be granted this permission to reopen. MITI site had already crashed with over 100K applicant's submission to reopen.
Dun go in... RUN. Internal char to generate cash for them to survive, all electronics and automobile industry not good throughout 2020 and will drag over to 2021.
buy back plus points :- 1. Decrease oustanding shares, thereby increasing EPS number as treasury shares not counted. 2. Signals to the public that the company is cash rich, no cashflow issue. 3. Utilize company cash to generate potential better returns than money market rates (<3% pa) if left in banks or in invested in money market funds, by selling out later when price is high. 4. Incentive to shareholders in the future if the treasury shares distributed to shareholders. 5. Can be cancelled out, reducing supply of shares in the market, EPS increased when earnings are improved.
buy back negative points :- 1. Company not utilizing the cash for expansion of capacity, or R&D, hiring, future plans etc. 2. Buy back shares will not help in share prices most of the time as market forces are usually bigger than the buy back quantity. 3. Cash can be distributed to shareholders instead of buying shares. 4. Company should focus on improving its business, preserving cash during bad times, rather than simply spending to buy shares which does not help its core business.
JHM buy back char kuan then sell out ask you to hold at higher prices lah! Run....run, go down to 0.45 only go in. US economy is in trouble - unlimited printing of cash just distribute to people to buy food, most Americans cannot afford to buy or change car liao, DJI is a freak numbers now!
haha.. run..go down 0.45?. Looking at the huge vol for the last 2 days, institutional fund managers are collecting...something is brewing la...I would buy more...
wow.... why suddenly turbo charge today? i just joined jhm recently... want to ask those old timers here, the transfer to mainboard going to happen end of June?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Trapps
520 posts
Posted by Trapps > 2020-04-08 21:44 | Report Abuse
Tml spike again...up up up