Sunpower announced it has gotten a share buyback mandate today. I expect that Sunpower will start buying back shares probably next week, otherwise it will be ridiculed as wasting time and effort & money to organise a Special General Meeting today to obtain the mandate. There is a small window (over the next 4 weeks) for Sunpower to buy back shares before a 1-month blackout period ahead of its FY18 results announcements.
No buyback yesterday &, likely, today. Because the stock price at 38-39 cents is out of reach of the share buyback scheme, under SGX rules.
The rule is :
Companies buying back shares via on-market acquisitions must not pay more than 105% of the average closing market price of the security over the last 5 consecutive active trading days in the security.
What it means: For Sunpower, If its share price can keep to at least 38-c level for another 3 days, Sunpower will be able to come out and buy.
As I had estimated, the 5-day average has climbed and, not surprisingly, Sunpower came out again to buyback shares. Just 80,000 shares at 37.5 cents. Hope it turns more aggressive from here on.
