some companies with a lot of cash and nowhere to spend will do the share buyback. You don't see companies with weak cash flow doing this.
Besides, it is also indirectly to inform the shareholders they are serious about the valuation of the company. Of course, it is not possible to control the market force; at least something is done to safeguard the interest of the shareholders.
haio supports a lot malay entrepreneurs.... a perfect fit to dr m business/economic strategy...... haio capex will increase, and thus operating profits.... good days coming..
not to mention that the treasury shares can be benefiting the shareholders in either:- i) if distribute as share dividends, shareholders get free shares ii) or, if cancel them off, reducing the supply from the market iii) or, if sell off at higher price, company makes profit, increasing the EPS.
Either way, the shareholders will benefit from this.
Hi leslie,dont try to influence other to sell at this point,if haio trading at PE 15, i think other MLM will collep soon.This is because Haio is the only MLM company who cover 75% of malay market (majority of malaysia population)
In bear market , punters r not willing to buy shares with high Pe given that there r plenty of other stocks that r trading Pe 2~5 to select n more rooms for the upside . Afterall Haio business 4 dealing with items that r not a necessity . Its businesses r not fully insulated against the pitfalls of supply n demand . Any drastic change will be considered a big challenge n the tendency of ups n downs will be seriously felt if trade wars ascalated.
try to test how strong company finance to support share buy back when price dropping.You know this is the most famous foreign fund to accumulated the good share.this happen in Perstima case.see when this counter recover, up RM1.5 witin 2 months time.
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....
gohkimhock
2,946 posts
Posted by gohkimhock > 2018-05-03 10:55 | Report Abuse
@ktsk88 good to hear that you're still keeping it. It's hard to find another counter with such quality once you sold it.