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Find out which company's buybacks are real
Lot of stocks have been buzzing due to buybacks. Some of these buybacks are for real and there has been real bit of buying while some of them are deferred.
Recently, a lot of stocks have been buzzing due to buybacks. Some of these buybacks are for real and there has been real bit of buying while some of them are deferred.
Company: MRO TEK Buyback date: The company's board is to meet on February 25 to consider the same. Stock rally: Ahead of the buyback board meet, the stock has gone up about 18% in the last 3 trading sessions. It is also up 5% today in terms of volumes, which is nearly 21 times its 10-day average. Position in books: As on March 31, 2008 if we compare the company has no debt on its book and it has a cash balance of about Rs 40 crore. Comments: The company in the past made a buyback which has sailed through smoothly.
Company:Indiabulls Securities Buyback date: The company had announced its buyback on February 3 at a price of Rs 33 Stock rally: The stock rallied about 25% for one continuous week after the announcement, after which it has corrected down about 11% from Rs 25 to about Rs 22. Position in books: The company also has a good cash balance of about Rs 275 crore as on March 31 2008 Comments: The company sees no problem for its buyback passing through.
Company: GSS America Info Buyback date: The company announced the buyback at a price of Rs 250 on February 10 Stock rally: The stock rallied about 38% for consecutive two days. It then corrected about 25% from Rs 125 to Rs 117. Comments: There is no valid reason for the company like this to go for a buyback because the company had listed one year ago.
Company: Hydro SS Buyback date: This company had proposed a buyback in October 2008, but due to a few technical issues the buyback got an approval from the Company Law Board only in January 2009. Comments: The company today was supposed commence its buyback operations but has deferred its plan.
Company: DLF Comments: This company made an buyback of Rs 1,100 crore in past but the company also has a debt of about Rs 12,000 crore in its book and so there is valid justification for such a company to make a buyback, it should first retire its debt and then go for buyback.
Company: Reliance Infra Comments: This company had got an approval of about Rs 2,000 crore for buyback of which only Rs 800 crore was bought back and the company has not even looked into the balance Rs 1,200 crore and is also not proposing another buyback.
