What do you think of the stock buyback program? 🔎Be a smart Value investor by using Seeking Alpha Premium to get 20% discount with 7-day trial: www.sahg6dtr.com/392M6MZ/R74QP/
I've been screwed over by them, in particular opt out buy back that I missed notice for due to being on vacation. On the other end I've also had shares tank due having companies issuing more shares to raise capital and the share price hasn't recovered.
After watching your presentation I think every buyback should be scrutinised carefully by regulators for legality and tested against the company's fiduciary responsibility to thier shareholders.
Thank you Irene for simple explanatory video. If I think a buy back is good, the company are buying the shares at a discount to the intrinsic value I would double my exposure by buying more shares, if you agree they are undervalued it should be a bargain. The opposite would be true if I though a buy back was over paying, time to cut my holdings. How many share buy backs are to keep major share holders happy with the CEO, are they a sweet treat that shows a company's growth potential is slowing or reversing.
I agree-it ultimately hinges on the company's health and growth prospects. If the outlook is positive, shareholders who stay stand to benefit. On the other hand, if the company’s trajectory is declining, participating in the buyback to exit could be a smart move.
As long as the companies are buying their stocks back from the market (willing sellers)it is fine. Adds value to my position. The company becomes more profitable because it doesn’t have to pay out so many dividends.
A company doesn't become more profitable because it pays less dividends, dividends are the money that the company pays to share holders. Companies can pay dividends in years when they make an accounting loss and not pay them in years when they make a profit, they could even borrow money to pay them. Dividends and profits are not equal.
@@yeetboi268 That effect is overblown. Less outstanding shares by itself would increase share price, but the company needs to pay cash or issue debt to purchase the shares. Both methods would counteract the increase in share price.
What do you think of the stock buyback program? 🔎Be a smart Value investor by using Seeking Alpha Premium to get 20% discount with 7-day trial: www.sahg6dtr.com/392M6MZ/R74QP/
I've been screwed over by them, in particular opt out buy back that I missed notice for due to being on vacation. On the other end I've also had shares tank due having companies issuing more shares to raise capital and the share price hasn't recovered.
This was a great video. Now I have a basic understanding of why they keep doing all these buy backs. Thank U
After watching your presentation I think every buyback should be scrutinised carefully by regulators for legality and tested against the company's fiduciary responsibility to thier shareholders.
Thank you Irene for simple explanatory video.
If I think a buy back is good, the company are buying the shares at a discount to the intrinsic value I would double my exposure by buying more shares, if you agree they are undervalued it should be a bargain. The opposite would be true if I though a buy back was over paying, time to cut my holdings. How many share buy backs are to keep major share holders happy with the CEO, are they a sweet treat that shows a company's growth potential is slowing or reversing.
I agree-it ultimately hinges on the company's health and growth prospects. If the outlook is positive, shareholders who stay stand to benefit. On the other hand, if the company’s trajectory is declining, participating in the buyback to exit could be a smart move.
As long as the companies are buying their stocks back from the market (willing sellers)it is fine. Adds value to my position. The company becomes more profitable because it doesn’t have to pay out so many dividends.
Did you watch the video? Buybacks are costlier than dividends because they increase the cost of management bonuses.
A company doesn't become more profitable because it pays less dividends, dividends are the money that the company pays to share holders. Companies can pay dividends in years when they make an accounting loss and not pay them in years when they make a profit, they could even borrow money to pay them. Dividends and profits are not equal.
@@neild2605 dividends are an expense my guy. If the company owns more of its own stock it loses less of its money to handouts.
@@yeetboi268 That effect is overblown. Less outstanding shares by itself would increase share price, but the company needs to pay cash or issue debt to purchase the shares. Both methods would counteract the increase in share price.