Read Merryn's article and http://www.cfo.com/article.cfm/14633291/1?f=search but still really none the wiser. Don't know if executives at ACHL have incentives that kick in with improved EPS but whatever the idea of this buyback which has cost £2.335m so far(my calculations), it doesn't seem to be holding up the share price. Perhaps they are buying shares which they consider undervalued. Anyway, I hope we're now down to support and can resist dropping further. I always look at the HK ACHL price and we seem to take our lead from that - they close at 9 am London time.
I like the fact this board is quiet as we can keep on buying at these low levels. Can you answer me a question buddy...........ACHL are repurchasing and cancelling which I presume is better than holding in treasury? Am i correct in thinking that?
By my calculations, at an average repurchase price of, say, 38p, we've now spent £2,335,480 on the 6,146,000 shares we've repurchased for cancelling. These are always repurchased on the HK exchange but the price in HK seems pretty well pegged to the LSE price. The Outstanding shares on each exchange are shown as 1,224m so presumably these pooled together to make the total. We've now cancelled 0.5% in this repurchasing programme.
What is the point? It's now getting cheaper each day to cancel shares as the sp drops. We won't have to pay divis on these shares in the future. Is it helping to shore up the sp?
Hoping for a bounce back off support @ 35/36 soon. This board is toooooo quiet.
Bit worrying how this is drifting nearly every day. It's got to be a slow one for news due to the nature of the business I suppose - oranges don't like being shouted at. As Taffer stated on Apr 22, there are a few news items in the next few months but nothing expected imminently. Support level @ 34-35p? So should stop drifting and bounce soon.
Seymour Pierce maintained its "buy" stance on Asian Citrus (ACHL), with a 65p target price. The broker's has visited the company's fruit juice division, BPG, and noted that lower concentrate sale prices have been compensated for by cheaper local fruit costs. Additionally, Seymour Pierce noted that the firm's margins improved in the second half of the financial year due to the production of the more profitable pineapple juice concentrate. The broker said that the facility has capacity for 40 thousand tonnes of concentrate per annum and added that a second plant with equal capacity is scheduled to be commissioned in the fourth quarter of 2012.
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