NEW YORK (TheStreet) -- Shares of Malaysian e-payment solutions provider MOL Global (MOLG) continued their up-and-down week on Thursday, as the stock declined 12.05% to $3.43 in early afternoon trading following Wednesday's gains.
The shares rose Wednesday after the company's largest shareholder, Vincent Tan, made a statement in support of the company on Tuesday:
"MOL has encountered some difficulties over the last several days relating to an accounting error at its Vietnam subsidiary, a delayed earnings release and trading halt, and the departure of its CFO, Allan Wong. The timing of Allan's departure for personal reasons which unfortunately coincided with the delay in the earnings release have resulted in some unhealthy speculation on the company's financial numbers, and the stock price has been, in my view, unfairly punished.
I have the utmost confidence in the management and MOL and none of these unfortunate events alters my very positive view of the underlying business of MOL. I have communicated my support to the management team at MOL, and while I know they are currently working very hard on addressing the issues that have arisen, I have encouraged them to continue to remain focused on executing their business plans.
I also am very supportive of the board's decision to implement a share buyback plan, as I believe that at the last closing price the stock is significantly undervalued."
The company reported its third-quarter earnings results before Monday's opening bell, and the stock nosedived throughout regular trading hours that day. MOL Global reported a 62% drop in earnings to a penny per diluted share. Consolidated revenue climbed 5.6% to $14.5 million compared to the same period one year earlier.
The company also announced a $15 million share repurchase program, which it says should increase shareholder value over time. MOL Global expects CEO Ganesh Kumar Bangah to purchase $500,000 worth of shares over the next year.
More than 2.9 million shares had changed hands as of 12:18 p.m. on Thursday, compared to the daily average volume of 2,036,050.MOLG data by YCharts