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the buy back shares has become treasury shares.
ie the rest of shareholders own the shares.
therefore in calculating the nav need to less of the sharesbuy back.
keep the share price low for the ang mo house to sell cheap to other people
who want to buy. it is normal market functioning. when the time come the shares price will fly.
then push it and issue shares as currency for aggression.
a sgx listing is like getting a money printing machine if one know how to use it.
examples are tm controlled reits. they have been getting more and more money from market and yet reits holders make money out of it.
ie the rest of shareholders own the shares.
therefore in calculating the nav need to less of the sharesbuy back.
keep the share price low for the ang mo house to sell cheap to other people
who want to buy. it is normal market functioning. when the time come the shares price will fly.
then push it and issue shares as currency for aggression.
a sgx listing is like getting a money printing machine if one know how to use it.
examples are tm controlled reits. they have been getting more and more money from market and yet reits holders make money out of it.
recon12recce ( Date: 05-Jul-2022 22:53) Posted:
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Don't understand how the little bit buyback help shareholders...doesn't lift the price at all...some simple investors are just looking at capital appreciation of the share price...even if give 0.04 dividend...how many years just to breakeven for those who believed the sbb mandate and bought at 0.525?
Need to use up 200 million to get 1.133?
Better to let shortsellers get cheap cheap price?
Trade with ? and DYODD
Better to let shortsellers get cheap cheap price?
Trade with ? and DYODD
recon12recce ( Date: 05-Jul-2022 22:53) Posted:
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Equity: 4.25b. Shares 3.95b.
Sbb 14m shares, ard $6.6m.
Nav is rounded to 2 decimal, still 1.08. 😬
Sbb 14m shares, ard $6.6m.
Nav is rounded to 2 decimal, still 1.08. 😬
pasttime ( Date: 05-Jul-2022 21:15) Posted:
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generally agreed with this internet write up except this.
share buy back increased the nta per share if the buy back price is below nta.
it has only an indirect impact on share price.
share price is a function of demand and supply.
demand for the shares and supply of the shares.
demand depends on many factors. like now, main factor is fed doing qt
which reduced us market liquidity and bond auction which will demand for cash
in us. so big banks will be moving money back to us. causing places outside of us to
have a money drain effect. it is temporary until job done.
the other factor is money can also come from outside of us like china.
sometime ago i bought 883.hk and has to sell after trump administration band it.
my logic then is short of us fund sure cannot make it. i was wrong.
the chinese fund more then make up for it as money was chasing after oil stockwhen oil price went up.
so end of day no matter main share holders sell, some sanctions here and there. market has many
sources of money. as long as the business can produce good return and willingness to share the return as dividend there will be followers.
share buy back increased the nta per share if the buy back price is below nta.
it has only an indirect impact on share price.
share price is a function of demand and supply.
demand for the shares and supply of the shares.
demand depends on many factors. like now, main factor is fed doing qt
which reduced us market liquidity and bond auction which will demand for cash
in us. so big banks will be moving money back to us. causing places outside of us to
have a money drain effect. it is temporary until job done.
the other factor is money can also come from outside of us like china.
sometime ago i bought 883.hk and has to sell after trump administration band it.
my logic then is short of us fund sure cannot make it. i was wrong.
the chinese fund more then make up for it as money was chasing after oil stockwhen oil price went up.
so end of day no matter main share holders sell, some sanctions here and there. market has many
sources of money. as long as the business can produce good return and willingness to share the return as dividend there will be followers.
SAVIORFOREVER ( Date: 05-Jul-2022 21:20) Posted:
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Sbb will improve nav and dividend payout though. For eg: lets take 4.25b as total assets. 3.95b as ordinary shares. 327m as npat. 130.8m as 40% dvd payout. Say if coy use all of its 10% mandate and bought 395m shares today at 40c ($158m). Ordinary shares circulated in the mkt become 3.55b. 130.8m dvd will give each share ard 0.0368 as compared to 0.033 without sbb. Total assets after full sbb will be 4.288b (4.25b minus 158m sbb plus 327m npat minus 130.8m dvd payout) and nav improved to $1.20 as compared to $1.125 without sbb (4.25b plus 327m npat less 130.8m dvd payout divided by 3.95m outstanding shares). Back to your profits issue. Say 200m is npat and all used for sbb and all other variables remain constant. 200m can buy back 500m shares at 40c, reducing float to 3.45b. 4.25b as total asset. Nav become $1.23. If no sbb and no dvd payout, total asset become 4.45b, nav $1.126. This is mainly due to: sbb at lower price than nav. So i think is good for long run..😬 of course, cannot sbb 500m shares cos overshot 10%. Then the extras will form part of retained earnings or total equity or total assets will increase, thus increase nav.
tpohwashere ( Date: 05-Jul-2022 20:39) Posted:
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Abstract from Internet
How stock buyback impact shareholders
Stock-buyback programs differ from dividends in that there's no immediate, direct benefit to shareholders: With a dividend, shareholders get cash.
But shareholders do benefit indirectly from a buyback or repurchase program, as the goal is generally to raise the company's stock price. The idea is that by taking shares out of circulation, the remaining shares will be worth more. Think of the company's overall value as a pie: If it's cut into fewer slices, each slice will be bigger.
Of course, it doesn't always work out exactly that way in practice. On one hand, just the announcement of a share-repurchase program is sometimes enough to give the stock a boost, before the company has bought any shares.
On the other hand, sometimes there's unfavorable news or a shift in the market while the company is in the process of buying its own shares. In that case, its shares might trade lower for a while even thought the total number of shares outstanding has been reduced by the buyback.
Generally speaking, though, a share-repurchase program will tend to boost the stock's price over time. That's not just because of the reduced supply of shares, but because buybacks tend to improve some of the metrics that investors use to value a company.
How share repurchases affect valuation
Share buybacks reduce the company's total number of shares outstanding and the total amount of cash on the company's balance sheet. Those changes affect several metrics used by investors to estimate the value of a company.
Once shares are repurchased, they are generally either cancelled entirely -- wiping them out of existence -- or kept by the company as treasury shares. (Treasury shares are counted as issued shares, but not as outstanding shares.)
Reducing the number of shares outstanding affects calculations such as earnings per share, which in turn affects a widely used valuation metric, the price-to-earnings ratio. If total earnings stay constant, but the number of shares outstanding falls after a buyback, the company's earnings per share will rise. Taking that one step further, if the company's stock price stays constant but earnings per share rise, its price-to-earnings ratio will fall.
Buybacks also reduce the amount of cash on a company's balance sheet. That in turn increases return on assets, because the company's assets (cash) have been reduced. Return on equity will also rise, because there's less outstanding equity.
Drawbacks to share repurchases
While a company's share repurchases are generally intended to be bullish for its stock price, there are sometimes reasons for concern.
Critics often contend, with some justification, that companies tend to repurchase shares after a period of success, when they have plenty of cash. This means that the company is repurchasing its stock at a high valuation. A company in that situation could end up buying its shares at a cyclical price peak, getting fewer shares for its money -- and leaving it with less cash in reserve when its business slows.
Investors should also proceed carefully if the buyback appears motivated by management's desire to improve its valuation metrics (or put another way, to manipulate them). A company that uses buybacks to create the appearance of quick growth in earnings per share, for instance, may not be a company worth owning.
Are share buybacks good or bad?
As with many things in investing, the answer isn't clear-cut. If the company genuinely has cash to spare, and its shares are arguably undervalued, then a buyback can be a good way to generate benefits for shareholders. But if its shares are expensive, it's worth asking why the company isn't choosing to pay a special dividend to its shareholders instead -- or hanging on to the cash for a rainy day.
Trade with awareness and DYODD
How stock buyback impact shareholders
Stock-buyback programs differ from dividends in that there's no immediate, direct benefit to shareholders: With a dividend, shareholders get cash.
But shareholders do benefit indirectly from a buyback or repurchase program, as the goal is generally to raise the company's stock price. The idea is that by taking shares out of circulation, the remaining shares will be worth more. Think of the company's overall value as a pie: If it's cut into fewer slices, each slice will be bigger.
Of course, it doesn't always work out exactly that way in practice. On one hand, just the announcement of a share-repurchase program is sometimes enough to give the stock a boost, before the company has bought any shares.
On the other hand, sometimes there's unfavorable news or a shift in the market while the company is in the process of buying its own shares. In that case, its shares might trade lower for a while even thought the total number of shares outstanding has been reduced by the buyback.
Generally speaking, though, a share-repurchase program will tend to boost the stock's price over time. That's not just because of the reduced supply of shares, but because buybacks tend to improve some of the metrics that investors use to value a company.
How share repurchases affect valuation
Share buybacks reduce the company's total number of shares outstanding and the total amount of cash on the company's balance sheet. Those changes affect several metrics used by investors to estimate the value of a company.
Once shares are repurchased, they are generally either cancelled entirely -- wiping them out of existence -- or kept by the company as treasury shares. (Treasury shares are counted as issued shares, but not as outstanding shares.)
Reducing the number of shares outstanding affects calculations such as earnings per share, which in turn affects a widely used valuation metric, the price-to-earnings ratio. If total earnings stay constant, but the number of shares outstanding falls after a buyback, the company's earnings per share will rise. Taking that one step further, if the company's stock price stays constant but earnings per share rise, its price-to-earnings ratio will fall.
Buybacks also reduce the amount of cash on a company's balance sheet. That in turn increases return on assets, because the company's assets (cash) have been reduced. Return on equity will also rise, because there's less outstanding equity.
Drawbacks to share repurchases
While a company's share repurchases are generally intended to be bullish for its stock price, there are sometimes reasons for concern.
Critics often contend, with some justification, that companies tend to repurchase shares after a period of success, when they have plenty of cash. This means that the company is repurchasing its stock at a high valuation. A company in that situation could end up buying its shares at a cyclical price peak, getting fewer shares for its money -- and leaving it with less cash in reserve when its business slows.
Investors should also proceed carefully if the buyback appears motivated by management's desire to improve its valuation metrics (or put another way, to manipulate them). A company that uses buybacks to create the appearance of quick growth in earnings per share, for instance, may not be a company worth owning.
Are share buybacks good or bad?
As with many things in investing, the answer isn't clear-cut. If the company genuinely has cash to spare, and its shares are arguably undervalued, then a buyback can be a good way to generate benefits for shareholders. But if its shares are expensive, it's worth asking why the company isn't choosing to pay a special dividend to its shareholders instead -- or hanging on to the cash for a rainy day.
Trade with awareness and DYODD
from starting point of 1.08 per share nta. after buy back today. nta is 1.114
more value per shares. not counting profit that is earn during this period.
as ang mo house sell the number of shares balance to sell has reduced.
more value per shares. not counting profit that is earn during this period.
as ang mo house sell the number of shares balance to sell has reduced.
my friend say zhou xiaoguang story is chilling...
nothing is for sure..dydd
recon12recce ( Date: 05-Jul-2022 19:34) Posted:
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The problem is that all SBB using profit will be diluted from dividend. So if they really executed on the $200m SBB, the dividend will be $0.
So for people making daily demands for SBB, just know that it' s coming from your dividend. The $16m spent so far on SBB (which didn' t move the needle), ... that' s 10% of your dividend down the drain.
So for people making daily demands for SBB, just know that it' s coming from your dividend. The $16m spent so far on SBB (which didn' t move the needle), ... that' s 10% of your dividend down the drain.
recon12recce ( Date: 05-Jul-2022 19:16) Posted:
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Short term can park in the safe and hope for if there is dividends declaring in August after H1 result
Company already set a target of 8 to 10% ROE. If this 1H result worse than 8% and SSH continue to make his exit now and then, then can forget abt 39c as bottom liao. Those buy queue (dunno fake or real) over 10 to 18m once pulls out, can get real ugly. Still bullish on longer term though. If you hold your belief😉
petson ( Date: 05-Jul-2022 19:19) Posted:
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Only 5 million plus. Wonder who the other bulk sellers are?
Trade with ? and DYODD
Trade with ? and DYODD
petson ( Date: 05-Jul-2022 19:19) Posted:
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think just wait for P&L result then c how....the performance & confidence is quite telling... dydd
recon12recce ( Date: 05-Jul-2022 19:16) Posted:
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Hmm, just assuming 327m npat same as last yr. And 40% dvd payout based on npat if coy honour the dvd policy announcement. 3.3c. No?
tpohwashere ( Date: 05-Jul-2022 18:43) Posted:
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Very strange. The 1st throw down was ard 8m. 2nd throw down 5m. Is there any missing announcements? Last % held ard 6.83 after 1st throw down. Today announcement immediately b4 this 2nd throwdown suddenly become 6.03%. Can stuff in fridge already cos SSH seems determined to dump below 5% holding.
Aeonfcuks ( Date: 05-Jul-2022 18:58) Posted:
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TR sold again, 5 times the size of the joke buyback. Like throwing a stone into a ocean and expecting a tsunami
SAVIORFOREVER ( Date: 05-Jul-2022 18:50) Posted:
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7352200 shares shortsell.
Wonder if shortsellers already know about the dump?
Trade with awareness and DYODD
Wonder if shortsellers already know about the dump?
Trade with awareness and DYODD
SAVIORFOREVER ( Date: 05-Jul-2022 18:05) Posted:
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No one knows how much is the dividend and you guys are making price projections based on a non-existent number.
recon12recce ( Date: 05-Jul-2022 17:35) Posted:
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1m today at 40c
Total bought so far 14m
Total bought so far 14m
uiop1223 ( Date: 05-Jul-2022 18:19) Posted:
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