This article only represents the author's own views.
It’s not often that you see investors get too excited about share buyback programs, even though they’re meant to be confidence boosters when management thinks a company’s stock is undervalued. But at least in one case, a newly announced $20 million share repurchase plan by online video site Xunlei Ltd. (XNET.US) seems to have brought the desired effect, sparking a 6.6% rally in the company’s shares after the announcement last Friday.
Truth be told, the rally looks more like investors searching for a reason to buy the stock rather than any real change in the company’s outlook. Xunlei is a bit of a corporate chameleon lately, starting out as one of China’s earliest online video sites at its founding in 2003 when the Chinese internet was in its infancy.