Seven Wolves: The Purpose Of The Buy Back Plan Is Doubtful Or To Push Up The Market Value Of The Stock Price.

The book has more than 1 billion 300 million yuan of currency funds, but has not implemented repurchase, especially since October, the profit lost most of its peers in the doldrums.

Some investors confessed in an interview with reporters that they were puzzled by the "buy away" of the seven wolves repurchase program, and expressed doubts about the true purpose of the buy back plan, which claimed to protect investors' interests.

Private analysts, who do not want to be named, also said: "do not rule out.

It is only possible to tell stories by pushing up stock prices and market capitalization. "

At the beginning of this year, A share listed companies set off a vigorous repurchase tide, and seven wolves also threw out a plan to buy shares less than 300 million yuan, which was passed by the shareholders' meeting in February 24th.

The announcement shows that the seven wolves will buy shares of the company at a price not exceeding 12 yuan per share, and the total amount of the repurchase will not exceed 300 million yuan. The estimated share repurchase is about 25 million shares, accounting for 3.31% of the total share capital of the company.

In the context of A shares' sharp fluctuations, the seven wolves launched the Buyback program at the time to stabilize.

Confidence and protection of investors' interests.

According to the relevant regulations, the seven wolves need to announce progress regularly before the end of the buy back period. As of now, 9 copies have been disclosed, but each content is identical.

The reason for the failure of the buyback plan was announced by the seven wolves yesterday evening. Since the motion was approved by the shareholders' meeting, the company planned a major suspension, made 4 financial reports, and made negotiations on the relevant investment projects. The important thing is that the stock price tends to be stable.

The purpose of the buyback plan is doubtful or to boost the market value of shares.

For the above explanation of seven wolves, investors in the interactive platform ridicule said: "this is the most busy A shares listed companies, every day there are major events."

A fund manager of a private placement said in an interview with reporters: "the share repurchase program may be just a trick for seven wolves to hype up the stock price and push up the market value of the company."

According to the reporter's statistics, the seven wolves gained nearly 30% gains in the short 20 days after the repurchase plan was disclosed, which not only won a big win in the market, but also performed well in the industry.

Perhaps it is because the buyback has not progressed, and the market funds have forgotten the stock, so the seven wolves have been in a state of sidetracking after the rapid decline in April, especially since October.

The stocks of the same industry all rose sharply, but the increase of the seven wolves was only one digit.

Book cash exceeded 1 billion 300 million yuan, the stock price has been lower than the repurchase price limit.

What is worth mentioning is that unlike most companies such as Vanke A, which failed to implement the buyback because of the "stock price higher than the repurchase limit", only one day in August 23rd, the intraday share price touched 12 yuan, and the rest were below the repurchase price.

In addition, the seven wolves announcement mentioned "planning major acquisitions", halted in the stock suspension for half a month, the acquisition of the target company has not been disclosed.

Reporters also noted that as of June 30th, seven wolf's Book Currency Fund was 1 billion 317 million yuan, of which bank deposits amounted to 1 billion 264 million yuan, "so the reason why the company did not implement the buyback seems not to be short of money."

The above private analysts said.

For investors' questions, the reply of the seven wolves is only in one sentence, that is, the company issued a buy back plan, which does not mean that it will buy the shares of the company in the two level market. Even if the price of the repurchase determined by the plan is determined, the company may not implement the buyback in the two market.

The seven wolf's "arrogant" response has attracted many investors' dissatisfaction. Reporters found on many interactive platforms that the shareholders' tucking points were mainly focused on the listed company's buyback plan, which was a behavior of not keeping good faith.

Three consecutive quarters of decline in performance, cross-border financial future unknown

With the "buy back period is about to expire, but 1 shares not repurchase" at the same time was Tucao, and seven wolves for three consecutive quarters of decline in performance.

Financial data showed that the net profit of the seven wolves in the first three quarters of 2016 was 64 million 380 thousand and 500 yuan, 40 million 844 thousand and 900 yuan and 63 million 630 thousand and 300 yuan, down 5.18%, 6.33% and 9.60% respectively.

As for the reasons for the decline in performance, the seven wolves continue to belong to the "external environmental impact, the traditional men's clothing industry downturn."

In the face of a continuous decline in net profit, the seven wolves in the deep winter industry are also considering the way out.

Statistics show that since last year, the seven wolves have defined the strategic pformation direction of "investment + industry". The company not only wants to enter "fashion group" but also expands to the financial field. It is understood that the Qianhai reinsurance company established by the company has been approved by the CIRC.

For the seven wolves, "cross border finance" looks very beautiful, but the head of the China Apparel Association industry department thinks: "whether or not to succeed is in fact unknown, because the direction of the company's pformation is far from the main business that has been engaged in. Because of the huge amount of human and financial costs involved in the cross-border process, the risk of increasing the booth is also increased."