Monday, March 12, 2012

N2N: Buyback? What for???

Many companies in Bursa are probably doing share buybacks for all the wrong reasons. (I should not be checking on buyback, but it still is reflective of the behavior of the management - can't help it) I thought the one I found out on Pelikan is bad enough. At least Pelikan has a decent business. Just that economic condition in Europe affected them badly. This one (N2N) as I noticed, the company has RM3.5 million cash, just bought a RM36 million property with debt.

Net Tangible Asset Value of RM29.6 million against market capitalization of RM148 million (at the price they bought back some of shares). Latest FY2011, registered losses of RM1.35 million. They are buying back shares? Bought back some 2 million stocks. What the @#$%. Must be dreaming share price is undervalued!

Serious Investing!

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