In my opinion, the company annnouced the jet lease on 6 Nov before the ex-dividend date 12 Nov comes, which made the shareholder disppointed and selling the shares to the lowest price. Then they bought back them at the lowest price.
DXN’s business model has proven resilient, even during challenging times. Their adaptability and strong market positioning make them a stable and promising company to follow.
Another positive closing, preferably above RM.49 (5D MA) could spur further rebound towards RM0.53 (10D MA) and RM0.56 (20D MA) zones. No worries for DXN
Leasing a jet also can avoid the significant capital expenditure required for ownership, such as the purchase price, maintenance, and storage. It's a smart move
1.Just 2 months ago on 20th Sept 2024 DXN was trading at 61.5sen. 2 There was a off market transaction for 223m shares done at 60sen. And thereafter the company announced a related party transaction in which DXN in its filing with Bursa has informed the shareholders that it has rented an aircraft from the founder's company for an annual rental fee of RM29.6m
3.A day following the announcement the share price collapsed spectacularly in a few consecutive days to hit an intra day low of 44.5sen and close the day at 46 sen13th Nov 2024.
4. As you may be aware, DXN has 4985m issued share capital say, 5b shares. The lost in market capital arising from the RPT of 29.6m is absurdly enormous.
5. The RPT of 29.6m had erased 5000m x (61.5 - 44.5) sen = RM850m in market capital. This is insanely ridiculous and yet it is true.
6. Insiders believe it was somewhat over done and has since begun to acquire the bashed down share in 2 direct business transactions. First, the director had acquired 76m shares at 50sen and on the 2nd transaction it had acquired additional 16m share also at 50sen on 20/11/2024
7 Market players sell their share for all kind of reasons, or for hundred of reasons.
8.But, director buys back its own company shares for only one reason. He believes the share price will rise.
9 DXN has recovered some lost ground. Today, it hit and intra day high of 50sen and closed 1 sen higher.
10. Personally, i believe there is value in DXN on a the long term basis. Market and the investors had over reacted on the RPT. 11. Again, if you buy DXN, there is no guarantee that you will make profit. Nonetheless, at 49 sen, the margin of safety is attractively high.
12. This is my personal perception of the counter and it is not a recommendation to buy or sell and not intended to influence your investment strategy and decision.
What sets DXN apart is their focus on preventive healthcare. Their range of supplements and natural products promotes long-term health, aligning perfectly with today’s shift towards holistic wellness.
DXN has 15 manufacturing plants, including 4 in India, 3 in China, 2 in Malaysia, 2 in Mexico, 1 in Indonesia, 1 in Nepal, 1 in Bangladesh and 1 in Dubai. DXN is a global brand
DXN’s presence in over 180 countries is a testament to their strong market acceptance and trust. Their products resonate with people worldwide, which is why they’ve built such a massive network of loyal customers and distributors.
Brazil is the seventh most populous country in the world, and has decent PPP. Therefore, their recent expansion in Brazil will further drive long-term value creation for the company.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CarolineTeoh
208 posts
Posted by CarolineTeoh > 1 month ago | Report Abuse
Director was buying back the shares at 0.50. What're you waiting for 😁
https://klse.i3investor.com/web/insider/detail/D_182313_2400182435