Mr T....very slow to the Forum this morning....exhausted ?
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Mr T....very slow to the Forum this morning....exhausted ?
Hey Snoops - less shares means higher EPS .... means higher share price id PE ratio maintained .... cool eh
But in many instances the PE ratio falls as a result ..... not good for share price (as it doesn't go up as its meant to because of higher PE)
Wonder what'll happen in this case ...... curious zebra might be even more disappointed
But in many in
Snoopy has given an excellent reply to your post.
Critical point imo to note is that it is irrelevant what one paid (cost) for shares in a company once the investment is made - what is relevant is where one believes the sp is going to go.
If you want to see how capital return via share cancellation can work favorably to enhance shareholders' returns, have a look at AIA and PGW (shares I own).
Both have powered on and delivered excellent returns to shareholders post their share cancellations/capital returns.
....and I certainly haven't seen much upward movement of the SP since the 10:1 share consolidation. Or was that different from share cancellation?
Maybe you're not looking in the right place? Or perhaps 25% capital appreciation in share price, in less than one year, since consolidation isn't "much', or enough, for you. It actually got up to 42% gain but has come off a bit. Yes, it's different from share cancellation. There's plenty of detailed explanation on the cancellation if you care to read it here, some of our best and brightest investors have spelt it out in detail.
AB’s lost to Argentina. First time to lose to them on NZ soil.
Maybe that’s why the SKT SP pulled back yesterday - the market knows that the All Blacks are worthless now!
Thanks, Snoopy for your detailed reply clarifying the difference between price and value - I very much appreciate the time and effort you put into explaining. However, I’m still left wondering how Sky’s Board and/or management will decide what price they put on each share when they come to cancel those shares? I can’t see any way to establish a price without reference to the market price at the time. Can you suggest any alternative pricing mechanism they might use, especially one reflecting a perceived value?