Confidence about the company's prospects next year dispelled concern about VIA's announcement Wednesday that one of its subsidiaries had bought 381 million VIA shares over the last two months.
National Securities Corp said in a morning note that it felt uncomfortable with VIA's strategy to support its stock price and recommended avoiding VIA. In Taiwan, a listed company will generally buy back its shares when its major shareholders are facing financial hardship, the note said. However, VIA denied that it faced such a situation. "Maybe some companies' situation is like this, but in terms of VIA's financial situation, it is still very healthly,"said the VIA official, adding that the company had about NT$7 billion to NT$8 billion in cash before the stock purchases by its subsidiary.
At the same time, with lots of cash on hand, and expectations of strong profits this year and next year, analysts doubted the company or company stockholders were under pressure from banks.
RSS