What greater statement can you give than investing in yourself?
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Originally Posted by
CAM
How do you measure your return?
Some would argue that with the fall the environment has become less risky
I thought this would have been a self answering question...your return is capital gains + dividends. If you bought in around Hector you would have made nothing over the last year.
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Why does the share price need to be strengthened?
I can see oil coming out of the ground and money going into the bank. I received a dividend. Seems like the management is doing OK to me.
Their job is to run the company not manage the share price. The market sets the price. If the market is miss pricing then so be it. That is the way the market works.
Everybody likes to see a bit more bottom line on their portfolio...? Depends what your investment horizon is, if you can accept the dividends and accept a volatile share price, then good. Some others might like a bit of certainty. Keeping money in the bank has no/little risk and you will still get a good return with peace of mind.
The managements job is maximize shareholder wealth. Finance 101. If they see opportunity to increase long term shareholder wealth, take it. By investing in themselves (sharebuyback) there is no due dilligence needed, less risk and a very good portfolio. As Unicorn has pointed out, $10 a barrel is all Tui is worth, and Kupe nothing. I would argue however, that the shareholding of PRC will not be fully realised in NZO until it is liquidated into cash...
Digger, you say dont make decisions based on short term etc...BUT enough people were looking into the long term and paying $1.50. Oil markets have come down a bit, but has the long term story changed? Maybe a few PUT options wouldnt go a miss. This may be a short/medium term blip and an opportunity to increase shareholder wealth. It doesnt mean spending their whole war chest on it, just a proportion, which would still leave room for potential acquistion and committments. I wish PPP would do a BB instead of management buying up themselves! Greedy!
Also, after reading some posts, some people think a BB is just to stimulate shareprice short term? As Rif-Raf says, it reduces the number of shares on issue, therefore increasing future Earnings Per Share...this means greater return per share.