Probably because a buy-back tends to give support to the shareprice. An opportunity to sell for anyone waiting for such an opportunity.
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Fantastic Craigs research on all the Electricity companies with buys on all. A few snippets on CEN
should enjoy c.10% or more above average SI inflows as result of El Nino
MEL and CEN control 64 % of country's hydro ; generation to be normal to slightly elevated. CEN's Hydro Clyde and Roxburgh
Geothermal Te Mihi up and running with take or pay contracts reduced to better match medium term usage expectations
We expect CEN to benefit from SAP system helping reduce customer churn.
Cen nearing the end of its capex cycle we see room for further Dividend growth in near term.
Clutha is at 79% of long run averages a slight risk
Reduced FY16 forecast from $566 mill to $560 mill
Target price $6.22 unchanged
Total expected 1 year return 26.3%
Contact showing early signs of improvement after a BAD july.
Nice to see the SP climbing gradually. Really can't understand why so many sellers since the buyback was announced. 15% into the buyback means there's a lot more room for the SP price to increase yet and better gains.....
All I can say is that some of those Instos bought into Origin sell down are taking profit. Once that sell down settles we will see $6 plus I believe. ASX listing surely didn't help the sp.
Makes my wonder why they don't want to take a bigger profit though - doesn't take a genius to figure out 20million share buy back will increase the price significantly. I nearly bought more but was rather heavily leveraged with them already and didn't want to have too many eggs in the basket. I agree, I can see getting near the $6 mark which makes me rather happy having bought in sub $5.
True they could look taking at bigger profit, guess it depends on their investment/fund objectives.
By my count they are 3.5 million shares into the buyback so just on 18% of the way there, had hoped the SP would have climbed a bit more but another way to look at it, the cheaper they get them the better the profitability and divvy's down the line. I am thinking of keeping a decent holding in the long term.
Bit frustrating isn't it, despite the buy-back sp sems to be moving sideways around that 5.10-5.15 range. Wonder who's doing all the selling?
Did you see the 'Hunters Corner' article in the NBR last week? The short summary was normally unexcisable options became activated when Origin sold out. Unfortunately for those that had the options (senior managers) they are out of the money, but only just. By doing an on market buyback, managment can inch the share price higher into the $5.20 plus range, making the options viable. Of course, if the options were then exercised this would reverse much of the value of the on market buyback for Mum and Dad shareholders! Maybe some shareholders see this as a rort, indicative of future behaviour of the management of the company, and want out?
SNOOPY