TITANic Bull Part II

Well, Titan closed yesterday at 1.44. (ahem!)

What is most interesting is that the Star has another write-up on Titan: Titan dips on expectation profit may fall short

Here's some of my comments on it.

1. The IPO price was priced at 1.77. (me was mistaken lah. I thought is was 2.17!!)

2. No mention on why Titan's IPO projection earnings for fy 2005 was soooooooooo optimistic.

3. The article focused on non-issues like sales growth. Duh! Sales growth so important meh?

4. Article suggested Titan has a share buyback which might limit the downside risk.

Now the last suggestion for me is totally nonsense.

Yes, share buyback can at times lend a boosting hand to a stock price and ultimately engineering a share price support and even a share price appreciation.

However... for me, it counts for nothing... it does not add extra 'value' to the company's fundamental value. And if and when Ze market deems a share not its worth, a company's share buyback will not stop a share price decline if and when Mr.Market heads for the exit. If so, how does one define might limit downside risk?

A good example? Take MPI. Many, many moons ago when MPI started its slide from its high, the company embarked on a share buyback in an attempt to support the shareprice around the RM30.00 region. Look at MPI's price now?

Sooo.... if and when a company has a share buyback program.... do u think it is wise to .... err..... errr.... (lol...lol...lol...... yeah.... here comes Posexpress favourite!) A S S - U - M E that the downside risk will be limited?

:D