what’s the point
6 replies (most recent on top)
@2gx+1jvr2fbe9 companies repurchase stock for different reasons, but over time market conditions and/or company performance the boost gained is lost , so let's see
Reducing the number of shares on the open market has several effects:
(1) If the market cap is maintained then the share price rises. This returns value to shareholders without an immediate tax bill
(2) Our company has gone from 290M to 360M shares over the last 5 years. They don't have the shares necessary to issue to employees as part of LTI without buying them. This will move some shares to the company treasury and be available for that purpose.
of all the investment options, chose this
"a company that has no good ideas should return money to shareholders, to reinvest in companies that do"
@bf+1jvr2fbe9 yeah sure, believe that. ! backs seek to up a company’s stock price in a trade off with internal investment, but over time it’s not uncommon for the stock price to retreat, sometimes reversing the entire buyback investment
Buy back is putting your money where your mouth is when you say the stock is undervalued