That is how I see it too king1212. They are taking my shares off me and paying me less for them than what I paid for them...so I loose out :ohmy: that actually makes me want to sell now :(
Printable View
If one bought below $2.90...then it is a good bought back....but the higher SP I paid ..the more u are going to lose in the short term...long term ...SP should be consolidate...but at the uncertain market condition.... nobody knows
We need Master Beagle to explain his thoughts..
"They" are not taking your shares off of you - you own part of the company and are buying the shares off yourself. Any benefit you see to the company is actually a benefit to yourself, and the share price should adjust upwards to account for it.
It doesn't matter whether the 'you' the owns the company or the 'you' that is being paid out 'wins' - it's all just financial shenanigans to allow the company to hand out some cash without attracting tax.
Yes I got it.....but when u break it down mathematically.....then at the current SP...$3.19 is going to loss a lot...after bought back ...if u don't take the bought back cash to the account....then 1 share ..end up $4 on your holding.
Depanding on the market...it will take a while tfor the SP to trade around $4
Think about how it would work if you owned 100% of the company. It's like transferring your cash from one account to another.
The maths is no different if you only own 0.001% of the company.
Oops a brain teaser going on here! :mellow:...............Think I will move on to the next stock.
does anyone know the date of record for this? Seems like a large free dividend to me?
Yeah, I was surprised when I saw the share price going down following the announcement. The remaining shares are slightly more valuable not less. Still, the current price is sentiment based so if the people think they are losing then the current price will drop.