It means the company buy back shares. It's one way to reward shareholders beside give dividend. You own bigger portion of the shares in the company because no of shares outstanding decreased. It might also in future, MAYBE reward shareholders by giving bonus share as dividend.
They can use the treasury shares to reward shareholders by distributing it back to shareholders or they can cancel those t.shares so the EPS in future will be higher per share thus increase shareholders value. The company has been aggressive with shares buyback since November 2016.
I think many have overlooked on this one which is still quite cheap with low PE and healthy profit every Qr. We shall see if it can get some new contracts or projects this year to boost it's tenderbook.
today break through to 0.90.. hopefully can gain back momentum, company is optimistic about battlesea project in UK, most likely can get the tenderbook.
last quarter sales not good, accum quarter result drop, EPS only 1.4, nta lower (0.69), cash low, with some debts (debt higher than cash), unless coming quarter result is superb, else the current price n trend cannot sustain, i doubt someone fried it high to sell .... buy up volume also low. Be cautious.
fundamental looks good...plus, company exercises buyback which supposedly increasing the share value...just waiting for large volume to come...then, hopefully sign can make grand slam again...
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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....
Goldmann
225 posts
Posted by Goldmann > 2017-03-02 23:55 | Report Abuse
may i know why the company want to keep treasury shares?
For what purpose?