I like the idea of a buyback in theory. Has anyone else thought how a reduction of free float for a company so tightly held impacts liquidity and thus price action. That also concerned me...I had bought some more at 14c but sold that parcel the other day at 15.5c as thinking about this had me wanting to reduce my exposure back to a smaller level. At least that lowered my average cost to historic lows.
The fundamentals look good and the company is audited (hope they have deep pockets if they haven't been to actually physically inspect the operations in country and verify it all). My understanding is it isn't as hard to get money out of China for dividends as I think some suggest (I read they have a lower corporate tax rate and there is an additional tax on div I think of around 5%, but happy to be corrected). The free float and liquidity doesn't make me feel entirely comfortable though and could be a long time to rerate. I will give it a sensible time and if no price breakouts then will move on and put capital elsewhere.
Keen on others thoughts...
XPD Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
