Indeed. For every buyer there is a seller and vice versa...
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I've seen a few share buy-backs and don't remember any of them having much of a positive effect. I would be surprised if ATM did a share buy-back to be honest and they can hardly be taken seriously suggesting the market has mis-priced the company given they seem to have so little handle on their own revenue.
The effect of a share buy-back often takes a while to be apparent in the SP - sometimes it just doesn't - but sharing profits among a smaller number of shares is still beneficial!
If they do a buy back might be one of those where every shareholder participates
That’s a share cancellation.
Personally I think any kind of buyback or payment of dividend will not be a good move - distracts from the ‘growth’ story. Could lead to a PE contraction.
Tough it out - fundamentals will ultimately prevail if the management and directors believe that the reduction in earnings growth is short term, let the market do what the market does.
Plus, a lower sp will give management & directors a lower entry point for their options or better still, for them to buy heaps of ‘cheap’ shares.
Interesting viewpoint from HC, as others have pointed out, any such news would see short positions basically incinerated.
"Contrarian view, but my belief is CAHG is gearing up to purchase a stake in a2(10-15%). Very similar to when Coca Cola purchased a stake in MNST. The fact a2 bought 75% of MVM even more so validates the rationale, along with the large push into MBS stores by which WE both benefit. Management will be privy to this information which is why a buyback or insider buying hasn't occurred. This has the potential to create an almighty short squeeze(APT/Tencent)."
Pardon my ignorance but who is CAHG?
BTW, you have not replied to how posters in HC are able to identify Ord Minnett as the huge buyer of millions of shares - genuinely interested to know as I have not been able to obtain said information from my broking sources since trades and depth were made incognito years ago.
CAHG (China Animal Husbandry Group)
Take a quick look on HC , they post screen shots of broker data showing buys and sells. I’ve seen Ord Minnett on a few of those lists. Plenty of comments there about Ord Minnett buying. I simply try not to double post too much from HC into Sharetrader as I know most here follow HC closely.
Thanks.
The screen shots I have seen (over the years) are often no more than lists of shareholders with the likes of Ord Minnett Nominees, Citicorp Nominees etc - simply means that institutions have been buying and putting into nominees. Posters do not have a clue as to who are actually buying!
To be honest I don’t really follow it, but there are lists they call “broker data”. Some track it quite closely, and you’ll often see people asking for the past weeks broker data.
A few people pointed out how many shares Ord Minnett were buying in the past week while also subsequently issuing a lower price target.
I’m not overly interested in the info, as not too concerned about short term price movements, what matters to me is where the share price is in say 12 months to 2 years.
I still believe in the long term story and we wouldn’t be where we are if it wasn’t for Covid.
Current Price action is showing market wants to find out its bottom first ...AUD 10 is crucial if breaks then much lower levels possible in the short term .
But thats the process every down trending SP goes thru ...keep falling till it finds support ...more buyers then sellers to stop the fall
Or something big changes fundamentally which makes sellers into buyers overnight