The company is too hesitant in its share buyback. Bought just a bit here & there. With its cash hoard of $33 million, it can afford to be more aggressive and send out a strong signal of support for the stock. It has failed to do so. Could it be because the earnings recovery ain't in sight?
Cash $33 million = 85% of market capitalisation of $39 million of Best World. Which makes it a value stock to some fundamental investors.
The stock saw some firm buying today. 510,000 traded.
Closed at 19 cents. This is on my radar screen --- looking at its performance pre-2008 crisis years, it was a market darling.
Can it regain its magic? i am not sure if that can happen soon. 1Q was a small loss, which was a shock as this business has never lost money in any FY. Waiting to see how 2Q goes.
Big queue now to buy, over 400 lots at19 cents, gap up, yesterday done at18.8. Results coming, if interim dividend maintained at 1.2 cts, stock will fly. Div yield would be 6.3%
Yield should be way above 6.3% if 1.2c is declared since this is only HY....but I think more important is that will the company be able to return into BLACK and growth!!
There is some pick-up in buying of Best World today. It's been a lousy stock..... the 3Q result could give it a sparkle. Balance sheet -- make sure to check the cash balance. If it's still ard S$33 million cash then it's even more than the market cap of $31 m. Perhaps that's why got buying interest today in a depressed market. Would like to hear the views of 'Bestworld' and other experts.
