KOH BROTHERS

Koh group has been buying back shares but the price of the stock doesn't move much. Wonder if it is a good buy.

Another 693,000 shares bought back today !

Koh Bros had about $33 m in cash and about $300+ million in borrowings. It's not exactly a cash mountain, yet it is spending on share buyback almost everyday.

Conclusion?

It certainly suggests that they believe in their own company and think their shares are undervalued.
But just puzzled why the past shares but back didn't stir up much price appreciation.

Another 406,000 shares bought back today -- at 30.5 cents.
There must be a grand plan behind this and a big reason .... I feel like scooping up some next week!

Hope it is not too late.
It was quite stable, went down to 0.3 for awhile then back to 0.305.
STI did so badly thus whole week. So disheartening.

Bought back another 100K shares yesterday at 30.5 cents --> total treasury shares is 16.481 million.

why has koh bros been buying bk its shares regularly, even daily in some weeks? I try to think like a CEO.

1. the stock is way too undervalued for my liking. But I don't want to buy in such big quantities each time that it causes the price to rise sharply.

2. Stock is cheap in the light of certain corporate actions being contemplated. Companies have the advantage of information asymmetry.

3. Buybacks take the sting out of shareholder complaints at AGMs abt non-performing stock price.

4. there is the benefit of a higher EPS (everything else being equal).