I was thinking about that also, I currently holding until we see some more solid information / plans from the company before I add anymore.
I think we will test the lows again soon and may dip in.
I am sure I will return a profit on what I currently own but it will take longer than I expected.
Don't worry about the particulars, I am sure we will see another buyback approved as they had $40 million approved in the first round and only spent appox $17 million.
Guys, the share repurchase program ended on November 28th. This is what was approved by the Board and that unless they approve a new additional buyback program. That's it. Rules are Rules.
I expect a new program to be announced in 1st quarter 2015, how can anyone not be tempted at these price levels.
With that said, someone is buying the shares. Stock is up 3.7% so far today (12/2/14)
This is a very slow moving ship. Most likely will see low $6 range as demand dries up and no real earnings start showing up in each quarters report.
Still will have a good 2-3 years wait, especially if construction does not start until end of 2015. (we have another year to wait)
After thinking about the buyback more, I realize that the buyback is the only realistic demand for the stock at this time and it is propping up the price in a limited range of $6.90 -$8.00.
I think NTP will let the buyback authorization expire and let the stock drop more, maybe under $6 range, then start buying back at a much lower level.
As for cash for the investment, I am sure they are getting very cheap funding, maybe from the state, or fed government. I think Mr. Koo has a exit deal all lined up, that after the real estate is completed and occupancy is over a certain level, say 60% they sell the entire project /company to a Chinese real estate business.
The more stock the company owes, the better this opportunity looks. You may see Koo & Kellogg buy more shares.
They know more than they can tell us. In fact, as Directors, they cannot disclose future plans
Mr. Koo is getting old, my thinking are that in 3 - 5 years he will be ready to retire. Mr. Koo does not want to manage a company that makes money only on rental income.
Restructuring the company to take advantage of the great assets (land holdings in prime real estate area) to the strategy that maximizes the financial returns to not only Him but to Mr. Kellogg and also the many shareholders is the end goal.
Every company leader eventually sells all his shares then retires.
If they have $36 million left on the buyback, then at say $7.10 / share, they would buy back 5,070,422 shares. Now if this was over 5 months to November end, this would be 1,014,084 shares per month. Or perhaps 253,521 shares per week. Daily volume is averaging 222,000 shares.
Problems at Target indicate a slow down in retail sales in general. Target is the direct competitor to JCP, so the big drop yesterday was all due to the bad news with Target.
ECONOMY IS BECOMING REAL SOFT, JCP will limp along but will not see $20 by the end of the year, maybe one year from now.
Where did you read this announcement? If true, something interesting is happening that we do not know. You are correct, if they feel they can buy back shares say at $6.50 that is roughly 6 million shares then they feel they do not need the cash for the development but then, if the stock price keeps dropping they could be vulnerable to a buyout from outside sources. If they do the buyback, this reduces the float to from 33 million to 27 million and provides support for a higher stock price.
Another thought, is that the development of the property will be completed sooner than the 3 years stated to complete the first phase (as mentioned in the update announcement on the website), and that opening could be in less than 2 years.
As for going private, unless the stock price raises to a much higher price, say $10-$13 range, it could be in play and the directors may also conduct a buyout.
Just a thought
What really happened with NTE, which I just picked up from the Japan Display IPO, was that Japan Display (JD) was NTE's biggest customer for LCD screens for Apple IPhone's, NTE announced this very large supply contract to JD, but behind the scenes, secretly, JD was developing the in-house capability to do what NTE does. JD then demanded from NTE a ridiculous large price reduction or else they would lose all the business. This demand came out of nowhere as a total surprise to NTE that JD had developed the capability to bring this operation in-house. The two companies relationship goes back a long way and they had very strong ties.
I think the reason JD decided to bring this work in-house was the need to improve sales and profitability as the company will then be a publicly traded company again.
Being that NTE majority of sales came from JD, when they lost the supply contract, they had no other option but to transition to another business plan, quickly. They were not a supplier to Samsung or any other cell phone manufacturer most do everything in-house or already have key partner suppliers.
In the long run, NTE will be better off, but it will be a boring next 3 + years minimum. So, take your money and invest in other stocks and come back in3 years to check up.
What I am very glad to see is that Japan Display's IPO was a disaster and the stock is down over 20% since the IPO. I hope they die.
I read it, and can only say one word, DEPRESSING
Looks like NTE has become a long term investment of at least 4 years. The stock can drop much lower based on the many unknowns when converting from a EMS player to a real estate owner and developer.
Well, I guess that could be a possibility, as NTE leadership (Mr. Koo) put his foot totally in his mouth on the conference calls last year by projecting rosy sales predictions based on their supply contracts and then, whamo, it all goes away with the contract loss, just as the real high volume was to hit. I am sure management does not want to go through that mess again with lawsuits and just plain bad PR about the company. But then, maybe their answer to this is just to stop having conference calls and posts the results. They really do not have to have conference calls unless they want to generate investor interests.
I would be disappointed if they did go private, I like the company and the management's thinking, they are always trying to create substantial value for shareholders. I think the Real Estate deal is going to be a big within 2 years. If we get into the mid 4's or low 5"s I may start buying again for the long term
World's Biggest Tablet, Smartphone Display Maker and Key Apple Supplier to List in March
TOKYO: Japan Display Inc., the world's biggest maker of displays for smartphones and a key Apple Inc. AAPL -0.08% supplier, is aiming to raise up to $4 billion in what would be Asia's biggest initial public offering so far this year.
The move, if successful, would represent a rare turnaround for Japan's manufacturing industry, which has been battered by the rise of Chinese and South Korean rivals.
The company has thrived by taking advantage of its manufacturing scale and focusing its resources on small and medium-size displays, despite earlier criticism that Tokyo was throwing good money after bad when it helped set up the firm in 2012.
Japan Display was formed from the loss-making liquid crystal display units of Hitachi Ltd., Toshiba Corp. and Sony Corp, with a Japanese government-backed fund pouring $2 billion into the combined entity.
In addition to making displays for Apple's iPhone 5s and iPhone 5C, Japan Display's client list includes other top U.S. and Asian smartphone makers, according to people in the industry.
The display maker on Friday gave the first concrete numbers on its lucrative business supplying Apple, saying that the U.S. company accounts for nearly a third of its revenue.
Japan Display grabbed a top share of 17% in the global market for small and medium-size LCD panels by value of goods shipped last year, according to estimates by research firm NPD DisplaySearch.
Japan Display said Friday it would offer up to 158 million new shares in the IPO. That could raise ¥170 billion or about $1.7 billion. The company intends to use the money to boost its production capacity and to develop new technologies. In addition, the current shareholders will unload part of their stakes, bringing the total IPO value to an estimated $4 billion.
IF YOU WANT TO INVEST IN THE DISPLAY SECTOR, THIS COULD BE THE BEST WAY TO DO IT.
Well, NTE could drop to the $3-$4 range again as there will be really no positive news coming to bid this stock up. Remember it takes time to transition from a major electronics manufacturer to a 100% restate developer or land manager type company. In the next few quarterly reports, we may hear about permit approvals, start of construction or maybe given a target timeline going out 2-3 years, but it's hard to get a handle on this one. I expect bumps in the road.
In the end, investors will make $$$$, Koo & Kellogg will not let you down, but the return could be 3 -4 years out. You could miss out on many other good investments that will appear after this current market correction, which I think is just starting.