SPC   

SPC

When company buys back shares, there are 2 things they can do.

1. Cancel the shares....i.e. issued shares will reduce and profit, and when translated to eps, will be higher. Also, and hopefully, dividents will be higher.

2. Keep the buy back shares in their treasury for the purpose of employees share options. In this way, when employees exercise their share options, the company will not have to issue more shares thereby diluting earnings and divident.

Both of the above are non dilutive to earnings.

 

 

The share buyback is definitely not a "masquerade" move as I have done sufficient research to know that SPC is doing pretty well for Q2 of 2007. Refining margin is very good in Q2 and with little changes to their business portfolio, it can only mean above average earnings for Q2. SPC should be flooded with cash reserves from the windfall.

SPC may not have completed their share buyback. Hopefully there is more at the end of the day and if that is the case I may stand to benefit from it as it may result in the share price going up another tick.

My estimated closing price for today is $5.70.

 

fairygal..yes SPC has  alot of cash so they spent some on buyback.

 

geojam,

But SPC cash rich right? Pardon me if I am wrong, I am just a new investor in SPC.

 

i read from somewhere in the book "sun tze - 15 dynamic investment strategies" that sometime share-buybacks is like a "masquerade" to let investors or wannabes investors to "feel" that the company is doing ways and means to "create value" in their stocks.. And pls hor, this is only an extract meaning from a book and i not referring to SPC.. wat people wanna come and pick poles wif me again.. 

 

007

U are rite...EPS and DPS theoritically shd be better.But downside,the company's cash reserve also down.

argument is that the company confident this year profits is good to replace the cash used for buyback.Some also argue,shd just give the cash as sp divvy instead of buyback.

Many point of views.

 

It can be quite complex in interpreting share buybacks.

My view is that this is positive as SPC is using the additional cash flow to fund share buybacks. This reduces the number of outstanding share and allow the company to increase the share divendend growth rate.

Anyone who knows more, please comment and correct me if feel that I stated incorrectly.

 

What is the impact to the market, if any?

 

Thanks! Not sure how I miss this. :p

 

Thanks! Not sure I miss . :p

 

http://info.sgx.com/webcorannc.nsf/New+Announcement+Last+3+Months+by+Company+Name?Openview&RestrictToCategory=SSINGAPORE%20PETROLEUM%20CO%20LTD

Read the Q107 report for info about sharebuyback.

Yesterday's oil inventory data was positive for SPC. Crude inventory up and gasoline supply down against analyst expectation of gasoline supply increase.

 

 

 

shplayer,

Is there an earlier announcement of the share back from SPC on SGX?  I would like to know how much share they intend to buy back from the market.  I wasnt able to find any annoucement on SGX and if you can point me to where the information of the share back is located, that will be helpful.

 

 

Thanks shplayer, seems like there is more buyback of 107 lots at 5.60

 

vivacious,

This is the daily SGX company announcement website. You gotta plough thru the announcement listings.

http://info.sgx.com/webcorannc.nsf/new+announcement+today?OpenView

 

How to track shareback by SPC? Where's the source? 

 

SPC bought back another 89 lots at 5.50 today.

 

I think it is healthly that the market is taking a breather and a much welcome profit taking session... I wouldn't bet for any drastic sell down in SPC though, must remember crude oil is still trending high.... 

 

SPC showing slight bearish signs. But may be overall market conditions?

 

Its a good thing for share buyback.

Share buybacks can drive up stock prices by creating a higher demand and value for shares on the market.

 

Yesterday, 26 Jun, SPC bought back 306 lots at $5.50.