Originally Posted by
percy
In a perfect world we would see companies like Ebos, growing from acquisition after acquisition,making sure each acquisition is earnings accretive.
However there are too many companies such as FBU and WHS who go from one disastrous acquisition to the next.
So share buy backs are a good discipline for the undisciplined .
Instead of looking at the US, Brian Gaynor could have written a more relevant article had he quoted NZ companies.
HBY is a good example of what a company should be doing.Instead of making another poor acquisition, they would be better to do a decent share buy back,and sell off their non core businesses, and concentrate on their excellent motor/equipment divisions.The market would positively rerate them very quickly.