But no new company news about yet, Mayne had one of its strongest days trading today as it touched a high of $3.97 which is the best high for 11 days, If it can it can break $4.09 tomorrow it will look a hell of a lot stronger as that will be a new high.
And the article below reads well
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Bad sign: a Mayne buyback looks good Author: Edited by Mark Todd Date: 30/04/2002
Sydney Morning Herald
If management is not trusted to do anything useful with the money, giving it back is wise. As Peter Smedley and Mayne Group's management batten down the hatches following last week's shock profit warning, analysts are gradually turning their thoughts to the pros and cons of a share buyback.
At a time when investors have lost faith in management's ability to make the existing operations work, the idea of buying new assets could look ill-considered. Obviously, a far safer, and simpler, method of improving earnings per share is to reduce the number of shares on issue.
On the current price, any purchase would be made at well below fair value estimates of about $4.40. So a buyback looks logical at these levels the shares slipped another 7c to $3.90 yesterday but the idea that a supposed growth stock has nothing in the acquisition pipeline does not excite admiration.
One little bright spot for Mayne came in the form of a research note from JP Morgan via recently revived retail broker Ord Minnett.
The broker believes the earnings revision could be too pessimistic as it was based on just one month's data (hospital admissions in March). JP Morgan thinks investors have over-reacted and the share price is now a bargain.
SYB Price at posting:
0.0¢ Sentiment: None Disclosure: Held
