INNOTEK

And so it continues.... InnoTek this evening said it bought back another 360,000 shares at 53.5 cents… I think company will just nudge the price up bit by bit, continue to buy back until it hits….60 cents??? Until black out period before the 1Q results in April or May? Let’s watch.

The company has bought back 16.6 million shares or 7.11% of the issued share capital. In $ terms, the share buy back has cost about S$7.5 million - actually this is peanuts as Innotek had $66.5 m in cash as at end-09. No time to check but I believe the share buyback had started in 09. (Cant be that they bought all 16.6 m only in the 1Q of this year, rioght?)

There was a posting earlier by MacGyver which a reader copied & pasted to NRA Cap\'s blog for Kevin Scully to give his views on. I have just stumbled on the reply which Scully posted on Mar 17. For what it is worth, here it is in full: Victor Thank you for your comments. Most companies in 2009 saw top line decline but profits were better from cost cutting. I have highlighted this many times in my commentaries. The key for 2010 is whether companies will be guiding for top line growth and stable or higher margins such as Broadway and Armstrong and even Innotek. Innotek management highlighted an expectation of strong Q1 and Q2 2010 numbers and a return to normal revenue patterns on a quarterly basis. They also talked about capacity expansion into new businesses such as cold forging. The labour shortage in China was also discussed but the management of Innotek indicated that while wages would rise - they did not see it as a problem. These factors which were raised at the analysts\' meeting supported management guidance for stronger top and bottom line growth in 2010. I have been meeting the management for the last 3 to 4 quarters and am comfortable with their guidance. The true test will be what they deliver in 2010....if the earnings growth that I have forecasted is achieved, I see no reason why the share cannot continue to rise even after going ex-dividend. A question on whether the dividend rate could be higher if profits in 2010 were better seems to suggest that earnings are on the recovery and given the company\'s surplus cash, it is reasonable to expect them to either buy back more shares or reward shareholders with decent dividends. Kevin on 17 March 2010 09:29 AM

5 cents dividend and trading at 0.59 only. TP 0.65 Why nobody buy?

hi, punter lim, where did u get the info on its target price at 65 cents? which analyst report did u refer to?

The MD kept to his word: InnoTek bought back another 478,000 shares – at 59 cents on Wednesday, 7 april. Total now: 17,144,000 shares. According to the NextInsight report, the MD said with a 5-cent dividend payout coming, the shares were more worth than keeping the cash in the bank earning 0.5%. www.nextinsight.biz/content/view/2282/60/ If only more bosses think as wisely as that, and benefit the company and minority shareholders. The share price rise as a result of the share buyback support has already been a positive reward for shareholders. Best World International management can take a cue from InnoTek. Hope BWI is already planning a bumper dividend to celebrate its 20th anniversary this year.