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Share buy back? thought mr ron is doing that all the time... maybe he now run out of ammo.
Just my two cents worth...
When a company repurchases some of its stock, that reduces the number of its shares outstanding. Even if its net income stays flat, the company's earnings per share will rise, since its total earnings will be spread across fewer shares. That in turn should life the stock price. And if the shares are cheap, then spending money to repurchase them is an excellent use of the company's capital. In theory, Share buyback is also rewarding to holders of stock options.
I deem it that OSIM feel that their stock price is undervalued hence they propose a share buy back. If its true, then this decision will be good to shareholders.
OSIM sent a circular to their shareholders recently on the prospect of a share buy-back. Issue will be discussed at their next EGM on 5 Sept. Anyone has any views on what will likely happen to their share price if it passes through?