Best World

$40m is huge sum for a small company especially so for one that always generate positive cash flow and don\'t have any capex plan. I\'m not complaining but what to understand the benefit of keep $40m and doing nothing quarter after quarter! Why not even use them for share by back is management cannot find a better investment than Bestworld itself!!

buyback? oh ya. i hv not checked - Do they have a mandate? Many companies routinely ask for mandate at AGM, so Best World has? If yes, what are they doing sitting on the mandate until it is flattened? Use it! Every day, if they buy 500,000 shares, the cost is only 500K x 30 c = $150,0000. Small potatoes but will send a surge of confidence in the stock, which anyway is clearly undervalued. :woohoo:

Look like they love sitting on the mandate just like the way they love sitting on the tons of CASH!!

The board of directors (the “Board”) of Best World International Limited (the “Company”) wishes to announce that the Company is proposing an issue of bonus warrants..... Good move but not great. Where is my CASH? Where is the share-buy-back?

I share the same outlook as dydx of Afralug forum, where he posted the following last night: To reward shareholders in conjunction with the 20th anniversary celebrations, Best World has just announced a F.O.C. 1-for-5 bonus warrant issue..... info.sgx.com/webcoranncatth.nsf/V...ne2010.pdf The warrants will have a 3-year life and carry a warrant conversion price of $0.30/warrant. This is indeed a surprise, and I think Best World management is getting creative in using this way to reward shareholders. I just hope that this warrant issue is not designed to replace the much anticipated Special dividend in conjunction with the Q2-FY10 results. If Best World decides to still pay a Special dividend, I am sure shareholders will be double pleased! What\'s the value of this warrant? Assuming Best World\'s share price stays unchanged at the current $0.30 level, I guess as a start Mr Market should be quiet willing to attach a value of $0.05 on the warrant, bearing in mind it gives the holder an option to buy into a new Best World share at $0.30 over a 3-year period. afralug.com/wsforum/showthread.php?tid=832&page=10

At 30 cents, you are buying into a company at NTA and a company that generates good dividend payout over the past 5 years. Interesting question is why do a bonus warrant with a timespan for 3 years? Unless the management has M&A targets in time which can be realised within 3 years.