The “plus” points of stock buyback
Basically, I am in favour of stock buyback or stock repurchase for the following reasons:
1) An effective utilisation of a company’s excess cash flow.
2) A decrease in the number of shares lying around in the market. With this decrease the shares’ prices will be raised
3) A positive reward for the shareholders who will be allowed to purchase the company’s stocks at a reasonable prices.
Giant companies worldwide are participating in this stock buyback strategy and they fare well. Companies that have successfully embraced the stock buyback strategy are:-
$Apple(AAPL.US$
$Tesla Concept(BK1180.HK$
$Netflix(NFLX.US$
$Berkshire Hathaway-A(BRK.A.US$
$Berkshire Hathaway-B(BRK.B.US$
$McDonald's(MCD.US$
1) An effective utilisation of a company’s excess cash flow.
2) A decrease in the number of shares lying around in the market. With this decrease the shares’ prices will be raised
3) A positive reward for the shareholders who will be allowed to purchase the company’s stocks at a reasonable prices.
Giant companies worldwide are participating in this stock buyback strategy and they fare well. Companies that have successfully embraced the stock buyback strategy are:-
$Apple(AAPL.US$
$Tesla Concept(BK1180.HK$
$Netflix(NFLX.US$
$Berkshire Hathaway-A(BRK.A.US$
$Berkshire Hathaway-B(BRK.B.US$
$McDonald's(MCD.US$
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HuatLady : Lots of positive outlooks for the stock buyback strategy.
Syuee : Generally, share repurchase has been viewed positively by investors.
HopeAlways : The positive points for share buyback are clearly explained, with a list of companies that have benefited from their share buyback.
Mike Hunt : My only concern would be if that capital could be put to use elsewhere with a greater potential return say in R&D. The share price could rise more from that activity than it would by simply decreasing the float as buybacks do