China Medical (fka CMEDQ)

[juxtaposezen]

Street Applauds China Med's Planned Share Buyback

China Medical Technologies (NSDQ: CMED) announced a $30 million share buyback program. The program will begin on October 1 and run for one year. China Medical is not obligated to spend the entire $30 million amount, and the release said the company may amend the program at any time.

Don’t worry about whether China Medical can afford the $30 million. At the end of its June quarter, the company reported a cash balance of $227 million, and its current market capitalization is $512 million, so the buyback represents only about 6% of the outstanding shares.

China Medical, an in-vitro diagnostic (IVD) devices company, currently focuses on three platforms: Enhanced Chemiluminescence (ECLIA) technology, Fluorescent in situ Hybridization (FISH) technology and Surface Plasmon Resonance (SPR) technology.

The street applauded the buyback program by sending China Medical’s shares 89 cents higher to $15.91, a gain of 6%. Volume was slightly heavier than normal.

http://seekingalpha.com/article/162319-street-applauds-china-med-s-planned-share-buyback