Yes, in the last 3 trading days no more buyback after hitting 10.0% limit. Still the stock is steady at 50.5 cents, despite market weakness today.

The company bought back 349,000 shares today. However, I am surprised to see it has hit 10.0% limit. Does it mean no more buyback until the mandate is renewed at the next AGM? Any guru can advise? 

As expected, Innotek bought back shares again today --- 383,000 to be exact, at 50-51 cents.
Innotek has another 4 million or so shares more to scoop up and then it hits the 10% limit.
What happens after that? Will they get a renewed buyback mandate at the next AGM?


http://info.sgx.com/webcorannc.nsf/AnnouncementToday/2326676F4CB984B4482579B10033B772?opendocument

The stock price should firm up in the near term because Innotek has resumed its share buyback yesterday with 449,000 shares bought at 50 cents.

I can see that fr the company  point of view buying the shares at 50 cents makes good money sense, cos that's 10% yield as it is going to pay 5 cents dividend.

Am not sure if it pays itself the dividend or it simply saves on not having to pay out 5 cents dividend. Anyone can clarify? Either way, it makes good sense to do the buyback. There will be more to come --- Innotek has a strong track record of share buybacks.

They did not make enough profit for FY11 to distribute $0.05 div per share so they are distributing previous years' retained earnings.........

Now, this is what I call a company that is shareholder-friendly!
Stock up 1 cent today to reach 48 cents.


SGX-Listed InnoTek Announces FY’11 Net Profit of S$0.5 Million;
Proposes 5.0-Cent Final Dividend For Fourth Consecutive Year

SGX-Listed InnoTek Disposes Stakes in Two Subsidiaries;
Resources Re-Allocated to Move Up Value Chain;
Prepare for Investment in New Business


Thumbs Up!

Group Managing Director of InnoTek Mr. Yong Kok Hoon said, “We remain focused on reducing dependence on businesses which are lower in strategic value, facing margin pressure or are less stable. Instead, resources will be channeled to enhance our value proposition in office automation and automotive divisions, move up the value chain to capture new opportunities in higher-end smart TV business and for a new electronics-related business.”

45.5 c. Justified?

Sabana has fallen to 87.5 after going x-d, yielding 2.17 cent in dividend. Badly underperformed in this current market rally.

Sabana didnt turn out to be a cool investment, as Innotek bought at $1.05 IPO price. The price currently is 91 cents, so it lost 14 cents per unit!
The dividend return probably has not covered the hole opened by the capital loss (paper loss).

Yes. Innotek can pay dividends from retained profits (i.e. undistributed, accumulated profits from previous years) even though the company did not make enough profit for the dividend amount. It really depends on the decision of the Innotek board and where the board will be taking the company next.

In the past year, the board saw it fit to invest in Sabana Reit which is essentially saying that we got so much cash and since we can't buy new business, and since we can't use it operationally to generate any better return, so we are on going  invest it on behalf of shareholders in a Reit instead of returning the excess cash to shareholders.

Hello Leo: Can't a company pay dividends that exceed the year's profits?  I doubt Innotek would do it next month for FY2011 results, though, unless it's confident it can do well this year to ' catch up'. What do you think?

Leo, I agree with your points. To add, the chances of Innotek maintaing a 5-c dividend are very low because the cash & cash equiv has gone down substantially as at end-Sept. From $96 million to $54 million. The free cashflow in 4Q might be better than in 3Q as business got better but not in a massive way.

Are you trying to talk up Innotek share ?

The YTD FY11 3Qtr cumulatiive profit stands at SGD2.0 Mio. Innotek expects a weaker Q4, optimistically let say they manage to make SGD1.0 Mio. Projected annual profit for FY11 is SGD3.0 Mio.

Total share outstanding Issued & Paid-up Shares 225,233,000

In FY10, Innotek made SGD17.8 Mio profit, they can offer to pay SGD0.05 div. In FY11, if Innotek pays SGD0.05 cents per shares, total dividend outlay needed will be SGD11.26Mio

By doing so, Innotek will be doing a return of capital and not paying out of its operating profits.

Old thread re-discovered -- the stock has done badly since the last posting.
41.5 cents currently. There is talk/hope/speculation of the same payout of a 5-cent dividend.