$Lufax (LU.US)$ why do the board not consider to buy back t...
$Lufax(LU.US$ why do the board not consider to buy back the share? for the benefit of share holder, since there is so much cash reserve.
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71875619 : they will but just waiting for appropriate timing, I think
hgar 71875619: what exactly is the 'appropriate timing'? surely the appropriate timing would have been when it was below $ 1 instead of doing an ADR ratio change and sticking shareholders with a 5%+ fee?
ABCDWXYZOP : I didn’t know there’s 5% fee for ADR conversion. And since they have cash to issue dividends, the dividends is subjected to high percentage of tax. Don’t know what type of management team is there.
hgar ABCDWXYZOP: the fees charged to my account this year (I use Charles Schwab) are equivalent to 10.3% of the current share price, adjusted for adr split. 2/3rds of it (0.20¢ / share) were from the ADR ratio change.
That fee alone was more than $100m in fees that Lufax dumped on shareholders on top of getting them a beautiful -66% return in a single year, as a nice christmas treat.
A few pennies from their cash pile would have been easily enough to keep it above $1 just from the vote of confidence alone. Doing a reverse split like this signals they had no faith that they could return the sp above $ 1 organically within a year. It's no surprise it immediately tanked -20% this week
They have absolutely no respect for shareholders whatsoever.
Anyone who was still gullible enough to hold since IPO needs a more than 1,800% gain to BREAK EVEN
Jeff Boyd : I don't think Chinese regulators would allow it. Part of reason for acquisition of the virtual bank from $OCFT (06638.HK)$ is to get cash out of PRC.