Too little, too late
$Futu Holdings Ltd (FUTU.US)$
Your f-ing company stock crashed from $100 to $40 yet you keep quiet. Then announce buyback followed by good earnings result, yet stock drop further to $30s - still do nothing. Last Friday price drop during premarket almost to 30, suddenly come and call out fake news about China ban and make a small buyback. What a sh!7show.![]()
Your f-ing company stock crashed from $100 to $40 yet you keep quiet. Then announce buyback followed by good earnings result, yet stock drop further to $30s - still do nothing. Last Friday price drop during premarket almost to 30, suddenly come and call out fake news about China ban and make a small buyback. What a sh!7show.
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doctorpot1 : ehhh they are a growing company and that means they need lots of money to invest in the business rather than doing share buyback (which is equivalent to paying dividend). it will only make sense for a buyback if the share price is super duper low. the ceo is suppose to focus on growing the business which in turn will grow the share price. so I rather they keep the 70m and use it to grow the user base to 10x then buying back share which doesn't grow the business.
71516546 : Part of reasons are Gov keep changing their mind. Early of this year, they planned to let Chinese citizens invest overseas, now they short $, so not allowed. That is the Gray area , Futu and Tigr took the risk and investors don't know.
fluidmotion OP doctorpot1 : The point was they failed to allay fears of China`s interference while the share price dived hard. When it was near all time low. then they made a buyback and blamed it on fake news. Not sure on the validity of that claim since the news source was still up. Sounded like some desperate move. SEC should be laughing at them for crying wolf after more than half your sheep have been devoured. Hence my rant title Too little too late.
doctorpot1 fluidmotion OP : the problem is they won't be able to allay fear using share buyback when prices is in the 100s because those are facts. China new PIPL is a fact, China saying online brokerage without license in China illegal is a fact, online brokage operating in China without CN license (although having HK license) is a fact, US new law to delist China company if they don't allow US to audit is a fact, China don't allow US to audit Chinese company is a fact, and many more things. so if they buy back at 100. the price will still fall to where it is now. just because you buy back shares doesn't make the market ignore the risk.
Look at HongKongLand when they first buyback share keep rising, but when new risk (CN property developers defaulting 1 by 1) no matter how they buyback, market keep pushing their prices lower (the highest buyback was 5.75, price now 5.2).
So why not take that 70m go bribe people in China (that's how business these operates) to get a CN license or some thing to make sure they can still operate in CN. if that happens, share price will go back to normal.
fluidmotion OP : Calling out fake news about China now won't work either. This stock is doomed to wallow in the low 20s until China says futu must be delisted. Then maybe futu will cry fake news again?