As long as I can get a three cent differential - and that is quite easy with spk, I can make a profit.
Printable View
Spark New Zealand announces on-market share buyback
Spark New Zealand has announced today that it plans to undertake an on-market
share buyback of up to 40 million ordinary shares for an aggregate purchase
price of up to NZ$100 million during the remainder of the 2015 calendar year.
The ordinary shares will be acquired on the NZX Main Board, the stock
exchange on which Spark New Zealand is listed in New Zealand.
Following recent divestments, including Telecom Rentals Limited and its 60%
stake in Telecom Cook Islands, Spark New Zealand's balance sheet is now
under-levered. The purpose of the on-market share buyback is to return
gearing to a more appropriate level for the Company.
Good news for holders blockhead, less supply gotta be good aye:cool:
It will be really interesting how the market responds to this.
It should be good news, interestingly, by way of simple arithmetic one could deduct that if SPK are prepared to buy 40m shares at a cost of no more than $100m then they are expecting to pay no more than $2.50 per share.
That puzzles me ?
The announcement says a purchase of up to 40 million shares so they obviously have a price range in mind. At the end of the day it all equals less supply and more demand plus being happy with the financial health of any company which does a large buyback due to being under levered.
I know share buy backs are very common place but the concern is that companies with cash are unwilling to invest in growth opportunities. Is this buy back confirmation that they have no ideas to grow their business?
What are SPK doing with lightbox? My thoughts after downloading the free trial is that the content is light compared to Netflix and unless they give this a good shot in the arm, it's going nowhere.
Spark have been growing their business hard out since moving from being just a phone company, lightbox is only a teaser for them, perhaps maintaining their A grade S&P rating is more important to them at this point in time? in order to keep keen overseas investment interest.