Last Friday, 9th March 2018, the share price of Boustead plunged to S$0.76. The Company took opportunity and purchased 2,220,400 shares by way of market acquisition as part of its share buy-back programme. Today, the Company purchased a further 26,705,100 shares by way of market acquisition.
Today, Boustead Singapore said that a substantial shareholder has expressed his intention to make an exit. I am curious who this substantial shareholder is. From FY2017 annual report, the below shows the twenty largest shareholders of Boustead.
A quick google did not show any sudden bad news hitting Boustead. What a steal at S$0.76! At the point of writing this post, the share price of Boustead has recovered back up to S$0.80.
But if a major shareholder decide to exit (especially when price level is at 52W low), isn’t it a sign that there are troubles brewing?
Hi Eugene, not necessary. Have to check if fundamentals of the company are still intact.