If companies are buying back, that means they're doing well and expect to continue to do so, or better
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If companies are buying back, that means they're doing well and expect to continue to do so, or better
If you own a business and decide to sell part of it to raise capital for growth, then most people would want to buy back what they sold when the buying was good.
I'd your have a company and decide to sell part of it because it's not going well, then you'd probably slowly exit the business. Future management may wish to buy back for those reasons.
Large faceless companies that area so lumbering may also but back for those reasons.
IMO
Therefore, if you think the company is a good one, but backs are a good sign.
The beauty of share buybacks it stops management doing "lazy" acquisitions.
Yet, if an acquisition is really good, shareholders will stump up with the funds.
A good example of wasted capital spent on foolish acquisitions has been FBU.
Had they had to go to shareholders for the funds, I doubt they would have happened.
EPS growth is what drives a successful company.That is achieved by excellent acquisitions,organic growth or share buybacks .
A bit like paying dividends,good discipline for management,ie thinking about shareholders,rather than themselves.
I'm sitting on the sideline at the moment. I don't wish rain on the current parade but personally - I wouldn't mind a Black Monday or two. I've just had a couple of term deposits mature and so my wallet is full and I'm ready to go shopping. But there's no sales on.....yet.
NZX.NZX is an easy one to trade while you keep your eye out. As is FPH.
VHP is worthwhile buying.
ARV may become a discount at the end of may.
DLG had prospects. I bought in recently at $5.85.
Another option could be just to build a long term portfolio and forget about the short term ups and downs. SUM could be a good bet.
Meant to say DGL.
Percy, why do you think prices will be down in a few months?
Not answering for Percy but seasonal effects have been documented.
http://www98.griffith.edu.au/dspace/...pdf?sequence=1