Hahaha... rumors!

Worst of all, such rumor is so damn difficult to confirm. Yup, how to confirm? Currently all based on heresay.

However, what's starring right in front of us is.........

1. Lots of ESOS being exercised on...
2. Lots of Bond holders are converting their shares...

Well, lots of new share, which are as expected but these shares have SIGNIFICANTLY much lower prices and these new shares could be sold.
The bond shares is the bigger worry.
That's 20 million shares which could be converted and sold for a very, very handsome profit. MILLIONS!

Normally, I would say, for the ESOS holders, well guys/gals you deserve it. But when you hear that the Executive Director, Lim Cheng Guan, also doing the same ( posted on this issue b4, see post #3284 in Oct) exercising 380,000 shares at a price of 1.70 and selling at 8.79 and 8.98 during a period when the company is doing aggressive buyback, that's a no no. Big NO NO.

The company and the boss should know. Such stuff is easily frown upon by the investing community and the market.

You cannot exercise/sell ESOS or dispose shares when the company is doing buyback. Accusation is simple. Is the buyback enabling the selling to be done at a much higher market price?

The 20 million bond shares issues. Do we know who the holders are? And once again, when these bond holders are converting and when they sell the newly converted shares, these holders will profit handsomely! And because buyback is happening at the same time, accusations will fly. Is there a coordinated effort between the conversion of bond with the share buyback?

These 2 issue is such a massive concern imo.

Did another table ....



First column, COST = the total cost of the share buybacks since 9th Sept

Second column, NUM SHARES = shares bought back during this period

from there, this table is created. I created the third column, share price. Which calculates the value of all these treasury shares based on the share price displayed. ie. If Top Glove is trading at 8, one could know what is the marked to market price of these shares bough back. And from there I could do a simple assumption of the profit and loss

Share Price = share price.
Market Value = market value based on the previous column share price
Profit/loss = profit/loss based on the previous column share price

so for example, the table shows if TG is trading at 8, the share buybacks would have been worth 1.26 billion, which means that the share buybacks is worth a 117 million more.

and if refer the table, if TG is trading at 6.60, these share buybacks would have a loss of 104 million in value!

Yup, the figures are massive. Understandable. This is due to the sheer size of TG's buybacks.

Aggressive buyback, yes?


Once more... if the share buybacks are done with a 'noble' intention to reward the share holder by giving these buybacks as a bonus, wouldn't it be better if the company just give plain old cash back? Money is always better, yes?

There is no smoke without fire. 90% of rumours in this country turn out to be true.

An experienced fisherman could tell from rod movement what fish is hooked under the water. similarly, if one is experienced, could tell intention or objective of corporate exercise.

Treasury loss of $104m mean cashed out shareholders gain. believe many retailers have also sold at these or higher price.

after this series of sbb, dividend will be declared to calm sentiment.

This post has been edited by icemanfx: Nov 29 2020, 11:47 AM

boss, today got buyback...just letting you know (to keep track) tq

https://www.bursamalaysia.com/market_inform...?ann_id=3110267

Recorded in my Excel worksheet already.

Will only update posting once a week la.

Else, I will get complain saying I everyday post 'negative' news on TopGlove la.

TQ anyway.

I would like to give applause to TS. Good job!

Investors should be smart not falling into trap.

https://www.theedgemarkets.com/article/trop...op-glove-shares

Mr Boon, whats are your thoughts/opinions in regards to this news? indirectly SBB perhaps? mhmm why tan sri would use tropicana to buy TG?

No stress boss, won't complain or anything. would accept any opinions with an open mind tq tq

topg will likely distribute these sbb/treasury shares as dividend.

This post has been edited by icemanfx: Dec 4 2020, 12:39 AM

$79m is about daily sbb amount; for reason, topg didn't sbb today.

there could be a few reasons why tansri bought with tropicana; it is not uncommon for shareholders to have sold high and buy back at low price. expect a price rally before qr on next wednesday. Use Tropicana to cash out/SBB.

This post has been edited by icemanfx: Dec 4 2020, 01:16 AM

No problem. I shall reply you later when I read up more on it. But not on this thread.

Big player game very hard to understand

Update for the week ending 4th Dec 2020



Total number shares bought from 9th Nov to 4th Dec... 175,800,100
Sum paid for these shares = RM1,267,158,283.99

Average price for these shares is ... 7.20795

Closing price of Top Glove on 4 Dec = 6.65

Marked to market, the total market value of these shares bought back is RM1,174,344,668.00


Current marked to market prices losses is RM98,087,618.99

Could distribute these treasury shares as dividend and no losses would be booked.

Update ....

nice tracking

Tq. Hope you understand my message. Nothing against buybacks but one needs to realise how the company buyback is important. If badly done/managed or even abused, the buyback can actually hurt the shareholders.

This post has been edited by Boon3: Dec 5 2020, 12:31 PM

tq tq noted. like you have mentioned, TG been doing it quite aggressively. Tropicana bought into top glove share which means they are losing money atm

"Based on a back-of-the-envelope calculation, the property developer paid an average of RM6.97 per share for the lot." - from the Edge news
haha TG closed rm6.65 on friday

Well, some believe Tan Sri is kinda enough to distribute the wealth of TG...

Oh well, I believe Tan Sri might give them RM100 and shoo them off...

Not if you know them and view from them.

tansri could distribute these sbb treasury shares as dividend.

Distribute wealth? Do you really believe all such rumours. Lol. That's the easy way out, isn't it?

How about if I say the boss is way to determined and relentless in trying to maintain his stock's market cap?

Why not? Company got profit windfall ma. He wants his stock market cap to challenge Maybank. Understandable. Sudden extreme richness brings extreme wishes....

So could this be why his aggressiveness in buying back the stock, trying to maintain certain top price for his stock?

No matter what... right now... the way the company is buying back the stocks is not good for the shareholders. Current prices indicate a paper loss of close to 100 million. If the stock reaches a low of 6, losses will be over 200 million.

If one is the shareholder, one has the right to ask.. Wtf.

If you want to reward is, give us cash.

The way the company is conducting its buyback, the shareholders rewards dimishes!!