Cogo (COGO +2.6%) will change its name to Viewtran Group and its symbol to VIEW effective today. The branding change comes in anticipation of a 6 month transition period during which the company will restructure its ops into a financial services business.
Jeffrey Kang, who bought the core business (98.7% of revenue in Q1) for $80M, will remain CEO during the transition period until a replacement is identified.
The company also announced the closing of the $80M management buyout and now holds over $140M in cash, or $4.81/share, with no debt outstanding.
Given the large gap between share prices and the company's assets per share, the board has repurchased 6.79M shares at an average price of $2.12/share, and intends to repurchase up to 10M more shares. Although investors seem skeptical of Cogo's reported assets, share repurchase execution is one way to say that "money talks."