KOYO INTERNATIONAL'S share price did a spectacular dive today, plunging 84%.
From last Friday's closing price of 34 cents, the counter hit 5.6 cents at the end of trading today.
That wiped out $54.4 million of its market value, leaving the specialist engineering services provider with only $10.7 million in market cap.
It trailing PE now is still not exactly cheap at 7.2X. More attractive metrics are the dividend yield at 3.57% and the NAV of 9.27 cents a share as at end-June 2015.
As the price collapsed today, the company did a share buyback (which was probably its first ever) amounting to 6.3 m shares -- or 3.3% of its issued share capital. The purchase accounted for 23% of the 27.5 m Koyo shares traded today.
Koyo's purchase price was 9.976 cents a share on average, totalling $630,000.
The company had $15.5 million cash and no borrowings as at end-June 2015, so it could continue to buy back a lot of its shares.
The trigger for the stock fall? The damning SGX statement last Friday evening →
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Singapore Exchange (SGX) urges investors and potential investors to exercise caution when dealing in shares of Koyo International Limited (Koyo).
The share price of Koyo remained steady to higher from 26 October 2015 to 14 January 2016 despite the decline in the broad market during this period. |
