Monday, December 24, 2007

Giant Interactive (GA) - Recent IPO Buying Back Shares?

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Giant Interactive (GA) is one of the handful of Chinese video game makers...not a stock that really fits the fund profile but it's on one of my watch lists and I saw a huge spike this morning... curious to see what was driving the news I found news of a share buyback.
  • Giant Interactive Group Inc. said Monday that the online game developer's board has approved a buyback program for up to $200 million of its outstanding American Depositary Shares.
  • The China-based company expects to buy back stock over the next 12 months in open-market and other transactions. Giant plans to fund the repurchases from available working capital.
  • Chairman and Chief Executive Yuzhu Shi said the company's current share price does not reflect its potential value. "Furthermore," Shi said, "we firmly believe that our available cash resources will allow us to implement a share repurchase program while continuing to pursue growth opportunities."
All well and good until you realize this stock has not even been public for 2 months.... (already buying back shares??)
  • Giant shares have dropped 34 percent since the company's initial public offering priced at $15.50 on Oct. 31.
Wonders never cease...

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