statikinetic topglove is just part of the statistic, they are not special enough to be an exception or case study

Digging back my 1 year old post just to say aha i told you so .

Well earning contraction is here so in the end is buyback correct ?

Edit: i see you also got 1 year old post on this. Well hindsight 20/20 ehh haha

This post has been edited by ChAOoz: Dec 14 2021, 07:29 PM

Earnings contraction aside, HOW they executed their share buyback gave a clear indicator...

Was busy just now... so my reply was...

here is the link... https://www.bursamalaysia.com/market_inform...?ann_id=3087742

can see why I said it was reckless

I think it is always interesting to revisit unpopular opinions a year down the road when enough time has passed to clear the lens through which we view the event.
The share buybacks are one such topic, let's keep digging up those posts to see how close to the bullseye everyone got.

For me TG is special in the pond that is Bursa when talking about buybacks. When was the last local company that burned a billion ringgit on share buybacks? I can't think of one right now.

For me, CEOs are primarily responsible for the allocation of capital. And share buybacks are considered allocation of capital. Makes sense for beaten down stocks with lots of upside.
Berkshire made sense in this regard. Making a share buyback when in the middle of a one time event that has inflated the price to the moon? I for one certainly struggle to construct the business case for it at the time, much less now. I wonder if it was data and numbers that swayed the Tan Sri, or was it astrologists and dreams.

This post has been edited by statikinetic: Dec 14 2021, 08:18 PM

Well dividend and capital investment is permanence.

Surely some very smart bankers will tell Tan Sri that buybacks is less permanence and you have more flexibility to play around with it.

Well its not so easy as buying and selling treasuries shares does impact the whole listed Co market cap.

Well now would be a good time to do buy backs instead of buying at RM 6++

Kossan share price very tempting..

Kossan and Harta reacts slowest to changes to ASP .... ie they are the slowest to change their ASP compared to the top 2 glove makers...
hence their profits rises/falls slower compared to other glove makers...
which means... one really do not know YET how bad their profits will fall.....
so if one buys now, one has to be prepared for the incoming decline in profits....
would the market be gentle/kind for the poor results in the future?

yea... lots of cash on hand... but hasn't this the case for both of them?
one can invest and assume that the company could be generous with their dividends but .... end of the day that's the 'assumption' one makes...
the company could always use the cash for something else...

Just looked at Sapnrg numbers...

total borrowings is > 10 billion...

cash < 600 million.






how to rescue??

I think I am only seeing the surface here.
TG bought back shares between rm 6 - rm8, which is now worth less than half.

Yes!! the thing is for a stock buyback, the range of buyback between 6.20 to 8.00 is simply insane for one single day.

On that day, Top Glove bought back 13,420,000 shares valued at 99.972 million.

one day... isn't that excessive amount?


now we look at how the stock traded on that day...

Open price 6.45
high 8.03
low 6.15
Close 7.76

Can see the implication what the trading data on that day showed?
Too bad I dun have the chart, but my memory was the stock retreated after the its opening price of 6.45...
it retreated to around 6.15...
and then TG went amok....
yup... it went amok..... there's no other words to describe it...
it started buying back shares from 6.20 all the way up to 8.00!!!
spending 99 million....

6.20 to 8.00... who would make a buyback like that??

yea... I was like.... wtf.... buyback or goreng the f out TG?




there are examples I could show... backing up my claims that TG's share buybacks was badly executed...

This post has been edited by Boon3: Dec 15 2021, 09:26 AM

Just can't let go of the dream to beat Maybank

The dream is now to beat MrD....

Alright, I get the point now. Thank you.

There are many other buyback days where the buybacks were done at higher prices off the days low. Reasoning is, if the objective of the buybacks were done on a value basis or supporting the trading days lows, why buyback the shares when the stock is trading well above the days lows?

For example...

On the 26th Nov, see the daily chart below



The share price rose significantly that day, yes?

But Top Glove splashed out 9.978 million on buyback that day.
Min price was 6.90.
Max price was 6.92.
Source: https://www.bursamalaysia.com/market_inform...?ann_id=3108687



Is this a smart way to buy shares?

The share previous day close was 6.65. It gapped up and was already trading with a 25 sen gain , but yet the company buyback sifu saw it fit to splash out 9.9 million ringgit on buybacks between 6.90/6.92..

Or is this a reckless way to buy shares?

This post has been edited by Boon3: Dec 15 2021, 12:30 PM

True, looking back at the price of which the share was bought back makes no sense even if they were anticipating the share price to go higher.
As you said, the BB price should be at support levels or the day lows or when share price is well below the intrinsic value.
Money down the drain just like that.

At least I know now how much money I needed if I want to push TG up 20-30%.... hahahahhaha

The academics teaches that share buybacks are good. In theory yes. And actually I do agree....the theory.

But in examples I have seen (like MPI's buyback during the dotcom/semicon crash) ? My answer is no. Share buybacks still involves the process of buying the shares from the market. If the process is badly executed then it's a pure waste of shareholder funds.

As it is, TG splashed 1.4 billion in share buybacks this round.

At this moment, TG shares is worth only 1.98. Meaning those shares bought is only worth 391 million.

1.020 billion of the shareholder funds is gone... poooof! ....... just like that...

So tell me when.................

When a few of my shitcoins collections moon 1000x