dutyfree_buybk1.13
This chart was updated after the market closed on Jan 18 to reflect the full week's (Jan 14-18) data.

DUTY FREE INTERNATIONAL has attracted active discussion in our forum, so we decided to put together the chart on the right.

From the chart, and that of the stock price movement, one can see:

1. Duty Free's buyback has been rising non-stop since it began in December, marking the first such action ever since the company was listed on the Singapore Exchange in January 2011.

2. The stock price has surged along with the buyback.

3. The buyback in just two days in the current week (Monday & Tues) has far exceeded the total bought in any previous week.

4. Percentage-wise, the current week is seeing the highest at 72% of the total volume of Duty Free shares traded for the period.

5. The current week's buying is notable for its beneficial impact on the share price, supporting it at a time when the broad market was correcting.

dutyfree_chart12.12
Duty Free stock has risen from 33 cents to a 52-week high of 43.5 cents since the start of the company's buyback.

Duty Free has a clear intent regarding the shares it bought back: It cancelled them immediately, instead of classifying them as treasury shares which could be re-issued out in future when stock options are exercised, or as currency in M&A activities.

The cancellation of the shares led to a drop in the outstanding shares. The total cancelled to date is 9,895,000, or 0.8873% of the issued shares of the company.

It is not an overwhelming figure, but Duty Free doesn't have a high free float to begin with. Its No.1 shareholder, Malaysian listed company Atlan Holdings, holds 81.1%.

Duty Free may or may not continue its buying spree which has cost roughly S$4 million, but it is going to be raking in a big cashpile (by March 2013) from the completion of the sale of The Zon in Johor for RM325 million.

But if it continues to buy back shares and cancels them, liquidity will be reduced.

This is contrary to what many companies like to happen to their own shares, and raises questions as to whether there is some larger over-riding reason behind the buying and cancelling of shares.

Your views are welcomed. Post below or in our forum!



Recent stories:

First time in a long time: Insider moves @ CHIP ENG SENG, BEST WORLD, DUTY FREE INT'L


@ DUTY FREE INT'L AGM: Special dividend to come next year?

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    Comments  

    0 #42 divads 2014-06-10 15:31
    Buy back started again late May 2014.

    Berjaya waterfront aka duty free zon rumoured to have a casino?
    Quote
    0 #41 Alex 2013-03-17 08:53
    While I agree with Divads analysis, I believe that the company recent did a small buy back of shares at 0.4299 (102 lots), and they currently only bought back 1.04%, their mandate is 10%. i think should have support at least at 0.42 to 0.425. besides INDEPENDENT director bought 1 million warrants at 0.10, execution price 0.35, that makes it 0.45.

    So with land deal, latest share buyback (after break so long), director take up interest --> I bought back 20 lots at 0.425 the other day. I queue to sell already, TP: 0.47.

    I already made a lot of profits, now second bite at cherry. wish me luck.
    Quote
    0 #40 7169 2013-03-16 10:01
    Financial mth is Feb. So it will not be reflected in coming financial statement Q4 2013 to be released next mth. It will however be reflected in Q1 2014 which will be out in July 2013. So we have to wait till July, Q1 2014 then we will know what they will do with the money.

    This completion is expected, so impact will not be felt immediately I think.

    Then we also need to know how much rental they are paying to operate from Zon Berjaya now. Is the rental too high to affect the profit margin??

    Have to wait till July. In the meantime, usually in Q2 and Q3, share market will be bearish based on past trend (past few years).

    And Duty free has become illiquid recently as the amount of free float is getting lesser and lesser due to the share buyback.

    I will stay sideline at the moment. If market becomes bearish and couple with illiquidity of the share, I scared being trapped.

    But all along I like this share :-).
    Quote
    0 #39 Alex 2013-03-15 14:13
    Hey divads and garl,the land deal WENT THROUGH:

    http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2B91A254E36C0ACF48257B2F002BADD0/$file/DFI_Completion_of_Sale_15032013.pdf?openelement
    Quote
    0 #38 Alex 2013-03-14 11:33
    Garl and divads: I lock and load another 25 lots 0.425 today.

    Sold all at 0.48, 0.475. 4 days to Land Report. Huat Ah. Buy up for us 0.43 to show support?
    Quote
    0 #37 Alex 2013-03-01 17:46
    To Garl: you ask why I sold at 0.48? I sold because I wanted to lock-in profits. Turned out to be the best decision ever: now only 0.435. I am locked and ready to load at 0.42! earn 0.06 difference. I intend to go in 100 lot 0.42.

    divads: I think u r more or less right about the BB and support. But tbh with less than 17 days to the "land deal" I think, the share price from 0.435 can surge to at least 0.48. However, i won't buy unless 0.42 or below: too risky.

    all the best the bros still vested.
    Quote
    0 #36 Alex 2013-02-22 18:21
    Bro divads, I clear all my shares at 0.48 today at day high already. now 0.455.

    I bought 0.28 sell 0.48 --> thanks for the stock tip.

    But you sold at 0.38 lose 10c, sometimes just have more faith
    Quote
    0 #35 chrischin 2013-02-20 19:21
    After pausing and well rested, is it going to break the high of 45 cents and march on?
    Quote
    0 #34 Alex 2013-02-05 13:14
    divads, you are confirm wrong already. today closing 0.415 huge huge huge buyup. now 0.415, sell 0.42!!! you sold I assume 0.39-0.39 and I refer to you comment yesterday: "I rest my case". I also rest my case. thanks for recommending dutyfree but we can't listen to your sell call.

    awaiting your responses
    Quote
    0 #33 Alex 2013-02-05 09:33
    and you see your Ley Choon: recommend at 0.22-0.225 now 0.21 possible 0.205. still guru???
    Quote

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