Biosensor Recession proof -heartstent biz

This move to commence a share buy back program indicates that the company thinks the stock is  trading at steep discount...

Biosensors International Group (BIG) announced that it did a share buyback yesterday. We understand that this is the first ever share buyback done by BIG since its IPO in May 2005. The transaction price was S$1.1127.

Although the amount is relatively small at 1.5m shares (just 0.09% of its total shares outstanding), we believe this sends a positive signal to investors and could set a precedent for future share buybacks.

The share buyback also makes a lot of sense, in our view, given BIG’s large net cash position of US$331.7m (as at 30 Sep 2012). It would also provide BIG with more flexibility as compared to paying out dividends since we believe that BIG is a growth company and would likely reinvest most of its proceeds into growing its business.

Maintain BUY and fair value estimate of S$1.69.

Source: OCBC

Company bought back another 1,496,000 shares today!

Only a few people in this forum following / investing in |Biosensors? Me have a small holding, not too convinced about the stock mainly because of my lack of ability to understand the stent business. This is not selling fancy bread or operating aquariums.

The stock has been doing nicely. A market rally does lift a lot of boats. I don't think I will sell yet, as I am sitting on only 15% or so profit, which is also small potatoes given my small holding.

For those who are invested, can you share your views? Trading volume has shot higher but so has many other stocks' trading volume.

1 interesting development is the  issue of S$300m in principal amount of 4.875% fixed rate notes. OCBC analyst highlighted that Biosensors had US$331.7m of net cash as at 30 Sep 2012 -- so it  is not in dire need of money and has sufficient resources for its daily operations
|and working capital.

 Hence the funds raised would likely be used for M&A. Usually, the market likes M^A ... so Biosensors could have a lot of upside  -- already w/o M&A ocbc has  S$1.69 fair value estimate on the stock. BIG will report its 3QFY13 results on 7
Feb post trading hours.
                Maybe I can make a couple more $ to upgrade to  a touchscreen windows 8 laptop!                                                                

 
I like Biosensors for it's recession proof heartstent and it's 2nd generation stents which have been gaining market shares. I have accumulate this company from 23 cts up to over 50 cts. But I have sold all when the chinese company bought over.
I still like this company & recently bought 20 lots.