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New Image Group says shares undervalued, may re-introduce buyback

Tuesday 29th June 2010

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New Image, which makes health tonics based on bovine colostrums, said its shares are undervalued and the company may re-introduce its share buy-back programme.

New Image was responding to an NZX regulation inquiry into its shares, which have tumbled about 16% since the start of trading on June 23. The stock fell 5.9% to 32 cents today. The company said it knew of no reason for the decline.

Founding chairman Graeme Clegg had bought about 5 million shares of the company between March 31 and May 31. Since June 1 it has entered into its ‘blackout’ period ahead of full-year results due in August, and associated parties aren’t allowed to trade until then, chief executive Stephen Lyttelton said.

“The directors consider the shares undervalued at their current low levels and so are considering re-introducing the company’s share buy-back programme,” he said. “Any decision to do so will be announced to the NZX.”The stock has fallen 49% in the past six months.

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