The share buyback program by the company definitely build confidence for investors. Therefore, a 10% increase is not a surprise.
However, SIA or Ho Bee who have been doing share buybacks, it only brought temporary relief to the share prices. Right now, both companies's overall share buybacks are higher than the current prices. Though, do note that SIA did some share buybacks at below 11 dollars.
97 cents now! Goes to show that the market can be over-fearing about something that is insignificant. Business Times article recently has just jumped on the bandwagon.
Singapore-listed Yangzijiang Shipbuilding <
YAZG.SI
> in focus after the company addressed investor concerns about its exposure to informal lending and corporate failures in China.
Yangzijiang said to date, it had invested around 247.5 million yuan ($38.8 million) in two micro-financing entities, which accounted for less than 3 percent of the group's net tangible assets as at June 30. The company has not experienced any default of its investments in financial assets since 2008, it added.
Stock is in tight trading range 90 cts -$1. Closing price on Friday was 95.5 cents. Weak shipping rates have dampened sentiment for shipbuilders like YZJ.
Yangzijiang’s quarterly earnings crosses billion mark and at record high of RMB1.02 billion for 3Q2011
* Earnings grew 40% in 3Q2011 with more of higher margin vessels delivered and 156% growth in other gains
* Revenue up 12% to RMB3.46 billion in 3Q2011 as the Group delivered total of 19 vessels against 14 vessels in 3Q2010
* The order book stood at 114 vessels worth US$5.3 billion as at 30 September 2011
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