Buy backs is a double edge sword.

You bought back and price goes down, all existing holders suffer the loss with you. You bought back and price goes up, all existing holders enjoy the gain with you.

Buy back primarily will impact EPS and will also impact the subsequent dividend paid out if any. Again I would have prefer if they just give it all out as special dividend instead of using it to play the share market.

Such big buybacks is clearly wasting their profit and the dividend given to share holder can be use for other activity by their holders such as use it as capital to invest in other stuff.

you say as though its confirm that the price will free fall all the way if they don't do SBB.

you say as though they are like god can predict that they confirm can SBB at lower price.

buy in batches.

1. Because no one knows how low it can go. No one can time the market bro, no one.
2. They do buyback cos they can see the real value of something that commoners like me and u dun see. Meaning they see the gloves stocks are now seriously undervalue.

Eg, if someone is selling u brand new local original set of iphone 12 pro max for rm500 only, will u buy? I myself will buy it, and it wont be 1 unit. I could by 10 or 100 units, cos its undervalue. When the time comes, i can sell it off at 50% of the market price yet earn a lot.

red buy green buy, everyday buy RM 69mil

When do Tan Sri plan to stop? LOL

Anyway the writer continued....

The current share price is RM 7.30 as at 20th November :

The Dividend per share for FY2020 is 11.8 sens which translates to Dividend Yield of 1.6%

The Dividend per share for FY2021 is 63.5 sens which translates to Dividend Yield of 8.7%

The Dividend per share for FY2022 is 32.4 sens which translates to Dividend Yield of 4.4%

Next quarter for Top Glove should be Feb 2021 .....
analyst/research houses at that time... will be forced to ADDRESS the 2022 issue where profits will decline greatly... it's a matter of time.
They cannot be giving price target based on fy 2021 estimates anymore.... 

They, however, chose NOT to focus or mention directly the 2022 earnings decline.

Probably in the short terms. But with earnings contractions later on, many will view the buy backs in hindsight as a moved that weakened the company balance sheets and a bad utilization of capital.

The latest casualty of buying backs share during good times and suffer during earnings contractions are boeing and airlines:

https://www.washingtonpost.com/business/202...oeing-buybacks/

Same case for most cyclicals which have issued buybacks:

https://www.cnbc.com/2016/04/13/why-stock-b...appointing.html

I like buybacks on beaten down stocks, or stock that are otherwise stable but suffer a one-off event to their earnings like Covid and making their stock worth less than they are temporary. During this period, buy backs from company like Berkshire are very welcoming. This would mean, later on when earnings recover, there are less hand in the pie to share the money. Ie EPS growth.

One thing about badly beaten down super high flyer.....

Go dig out the chart on MPI or Unisem once more....

Their glory years was 2000 ... their gogo year......

when it collapsed ..... it collapsed.... go see how long it took to 'recover' .....
Badly beaten down stocks got many dangers .... biggest one is.... stale bulls

I feel panic seeing the all comments here, all so pro in investing, buying stocks based on what they can see in 2023. I felt so left behind, really need to do alot of catch up.

More productive, more sweat shop, more efficient. Use low prices kill off competitors. That is how they roll haha.
Once super profit / black swan pandemic event over. Just take current earnings divided by 10 loh 

Maybe i modify abit, Lets take Harta. Cause i plan to add them into my portfolio if price is right.

My calculation will be to take their normalized earnings post covid @ PE20 plus 3 years of super profit.

So a simple back enveloped calculation will give me as follow:

Targeted Normalized EPS: 20sen @ 20PE = RM4.00

3 Years of Super profit (RM2.40 EPS)

RM4.00 + 2.40 (Earnings) = RM6.40 <-- Target Buy price

So i guess not a factor of 10. Drop by half from now i will consider to add into as a long position 

Even at 6.40, post normalized earning it is still trading at 30X earnings which is still quite rich in terms of valuations and already consider very good for the business owners.

Astra has said it won’t profit during the pandemic and that the vaccine will cost between $4 and $5 a dose, though health advocates worry what that company and others will charge when the crisis is deemed over.

The U.S. agreed in July to obtain the Pfizer and BioNTech vaccine in a deal that sets the price at $19.50 a dose, or $39 for a two-shot immunization, a level BioNTech said could become a benchmark for developed nations. Moderna said it’s charging $32 to $37 a dose for smaller deals and less for bigger purchases.
https://www.bloomberg.com/news/articles/202...or-many-nations
Distributor profit and its fair market share price could be deduced.

I don't have time to check how many countries are setting up how much capacity. Fact is worldwide capacity will increase significantly. You can look at Malaysia alone and see how capacity is added.

is so funny.... article was highlighted cos there was insinuation that TOPGLOV could be a good dividend yield...

I only commented and pointed out .... based on the numbers used .... based on what was written....

it highlights 2 things...

1. Profits is estimated to decline after 2021.
2. Dividend yields although could be sexy in 2021, but calculations shows the yield will decline the next couple of years.

why accept the big boom 2021 numbers but refuse to accept the declining numbers the following year?

ya uncle here bought around rm9.5 haha bought 1 month ago around there
so still bagholding 

Most of these counters will never earn a single penny from vaccines. People will need to get out before this is concluded about these counters.

i try to keep silent but i just can't keep myself silent when i saw those kind of post.

i just want to give everyone one extreme example.

if TG tomorrow suddenly capacity +1000000000000000000000 bil/year, demand still more than supply.

understand? Don't keep focus on new supply news. That's not the bottleneck.

Unlikely, cronies want earn $$$

ur abang hijau khairy oledi sign with china, means they will buy from china. astra punya, no chance to get la, they supply whole EU dulu. outside EU lu man man wait. AND malaysia is not even a priority area compare to EU and US.

correct... sure china, via WHO covax program.

china already said will be cheap cheap... free samples some more.. kronies boleh dapat la...

everybody wins.

Omigod!!

Why the need for you to explain yourself?

What you shared was just facts.

You should ignore the posting cos he/she has been against those that post negative comments on the glove sector and for your case, it just blew my mind cos those were the facts.

Share facts also cannot?   

Turning into an i3 forum. So bloody irritating.