Wednesday, March 12, 2014

SATS Company Buyback & Sleepy Popular maybe awaking

SATS has launched series of company buyback of its shares.

The last it did was between 11 Nov 13 - 19 Dec 13, spent est.$8.509 million buying back at between $3.07-3.30. Price seem to have risen back until recently it fell again to as low as $2.93, a 2 years low.
Then it started buying back again, and has spent $9.339 million buying back till yesterday, there was also some large transactions today, it maybe buying back still.

While most companies buyback shares to reward its existing sharesholders, by reducing the number of outstanding shares, since dividends are not paid to Treasury shares it bought back.
Furthermore SATS seemed to only do so, when price seem to oversold. Its dividend of 10cent in Aug 14 & 5cent in Nov 13, if continues will equate to 4.95% (at $3.03 last close).

Adapted recent buyback history from, its a neat data to decipher corporate actions :)

Sleepy Popular maybe awaking
Popular has languished for sometimes & drop to as low as $0.22, it stayed there for sometimes until recently there is a force index spikeup signalling a potential rebound or breakup. On a side note, its extremely to buy at $0.22 now, I did a trade today at $0.225 (& waited quite some times to get), a potential entry price would be $0.225-0.23, with a stop loss at $0.215, targets would be $0.25.
Fundamentally, Popular should be announcing its quarterly result soon, do note that Q1 & Q3 are seasonally stronger earnings period. Lastly its dividend in Sept 13 of 1cent, if continues would equate to 4.58% yield (at $0.225).
Rolling PE: 8.84
NAV: $0.2668, Price/NAV: 0.82 (aka 18% margin of safety).

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