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.
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$4 million, but it is going to be raking in a big cashpile (by March 2013) from the completion of the sale of The Zon in Johor for RM325 million.
But if it continues to buy back shares and cancels them, liquidity will be reduced.
This is contrary to what many companies like to happen to their own shares, and raises questions as to whether there is some larger over-riding reason behind the buying and cancelling of shares.
Your views are welcomed. Post below or in our forum!
Recent stories:
First time in a long time: Insider moves @ CHIP ENG SENG, BEST WORLD, DUTY FREE INT'L
@ DUTY FREE INT'L AGM: Special dividend to come next year?
Comments
Berjaya waterfront aka duty free zon rumoured to have a casino?
So with land deal, latest share buyback (after break so long), director take up interest --> I bought back 20 lots at 0.425 the other day. I queue to sell already, TP: 0.47.
I already made a lot of profits, now second bite at cherry. wish me luck.
This completion is expected, so impact will not be felt immediately I think.
Then we also need to know how much rental they are paying to operate from Zon Berjaya now. Is the rental too high to affect the profit margin??
Have to wait till July. In the meantime, usually in Q2 and Q3, share market will be bearish based on past trend (past few years).
And Duty free has become illiquid recently as the amount of free float is getting lesser and lesser due to the share buyback.
I will stay sideline at the moment. If market becomes bearish and couple with illiquidity of the share, I scared being trapped.
But all along I like this share :-).
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2B91A254E36C0ACF48257B2F002BADD0/$file/DFI_Completion_of_Sale_15032013.pdf?openelement
Sold all at 0.48, 0.475. 4 days to Land Report. Huat Ah. Buy up for us 0.43 to show support?
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.
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
awaiting your responses
One word of advice my friend: Dun be greedy
Unless this one drop to 28-32 cents..
There are some thing I need to find out first before I will buy duty free again.. Like how much is the rental for the JB Zon, since they intend to rent the place for 25 years. Would it affect the profit?? So maybe after the post JB Zon sale financial results, then we have a clearer picture. They never announce how much rental they are paying for JB Zon right?
The worry is when market turns bearish, even with their buy back, you may not be able to sell your 500 lots, which is quite a lot.
Like I sold my shares (quite a lot too) at around 40 cents, but if I were to sell now, I think I am lucky to fetch 39-39.5 cents. Imagine there may be other holding 500 lots like you and they throw. Then based on the lower closing price, the buyback price will also be lower and you may be trapped.
Italy election coming soon and I bet euro crisis will come back.
Thank you for your advice, I guess and know you mean well. what do u tink of the share buyback? i think they will want to support share price at 0.390-0.40 but they do not want to push it too high.
Italy election is coming.. Euro crisis coming back again soon...
Not trying to push the price down, just trying to help a fellow forummer, your 500 lots is really quite huge and not easy to sell if market turns for the worse.
Monday: A lot of selling..
16:56:39 0.400 1 B
16:56:38 0.400 15 B
16:51:10 0.400 15 B
16:42:54 0.400 30 B
16:40:15 0.400 10 B
16:40:15 0.400 119 B
16:39:02 0.400 10 B
16:39:02 0.400 10 B
16:12:26 0.400 10 B
16:12:26 0.400 10 B
16:12:26 0.400 10 B
09:26:38 0.405 50 S
ok.. Friday 18th Jan 2013: bought back 50 lots
Today Monday 21st Jan 2013: no buying back
My prediction was correct.. If you dun sell now, the volume will get lesser and lesser until there is not enough volume for you to sell if you are holding a large number of shares.
It was never my intention to create panic, I was advising based on what I observed. My aim is to help people earn $$$. One must not fall in love with a particular share. There will be a time to buy and time to sell..
Dec 12, 150 lots, $0.325 = 48,750
Dec 13, 156 lots, $0.328 = 51,168
Dec 14, 20 lots, $0.33 = 6,600
Dec 18, 200 lots, $0.35 = 70,000
Dec 19, 100 lots, $0.35 = 35,000
Dec 21, 220 lots, $0.375 = 82,500
Dec 26, 462 lots, $0.38 = 175,560
Dec 27, 500 lots, $0.38748 = 193,740
Dec 28, 700 lots, $0.38964 = 272,748
Jan 2, 550 lots, $0.39 = 214,500
Jan 3, 350 lots, $0.39714 = 138,999
Jan 4, 840 lots, $0.40471 = 339,956.4
Jan 7, 500 lots, $0.4070 = 203,500
Jan 8, 200 lots, $0.415 = 83,000
Jan 9, 350 lots, $0.42286 = 148,001
Jan 10, 600 lots, $0.42692 = 256,152
Jan 11, 580 lots, $0.42690 = 247, 602
Jan 14, 980 lots, $0.4156 = 407,288
Ever since divads bro doomsday prediction (just because you sell, dont ask others to sell, create panic):
Jan 15, 2427 lots, $0.39378 = 955,704.06
Jan 16, 700 lots, $0.39429 = 276,003
Jan 17, 300 lots, $0.3925 = 117,750
Jan 18, 50 lots, $0.39 = 19,500
Total shares till date = 10,935,000
Total Value Bought till date = 4,344,021.46
Average Price (per lot) = 0.39725848
I think we can look forward to: (1) more share buyback and (2) Land deal --> special dividend --> even with no special dividend --> cash balance will improve a lot. up to you, bro divads the guru, you can listen to him. I will stick to my guns 500 lots, min sell price 43cents. Im looking to sell above 45 cents in actual fight.
undervalued.
I predict buyback will stop for awhile and they will see if enough momentum is generated.. if not, then perhaps they buyback again. In the meantime, wait for contra players to clear and force selling to clear too.. But with the USA debt ceiling crisis, in a bear market, is pouring money away to support the share price.. so I think better wait and see