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01-05-2016, 02:23 PM
#1241
Originally Posted by macduffy
I think the point of the article was that share buybacks can have a downside and that they don't all benefit all shareholders. A bit of a "caveat emptor" from one with a wealth of investment experience and still involved in the industry.
Yes. But at least CEN was very clear when they announced theres that they were generating excess cash and there were no suitable investments in the near term. I assume they have used all IC's so this is the most efficent.
On that basis, I think most would agree it was a reasonable course of action, if not the best. If they were increasing borrowing to do so, or forgoing investment opportunities, the situation would be different.
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01-05-2016, 06:39 PM
#1242
Member
Originally Posted by percy
In a perfect world we would see companies like Ebos, growing from acquisition after acquisition,making sure each acquisition is earnings accretive.
However there are too many companies such as FBU and WHS who go from one disastrous acquisition to the next.
So share buy backs are a good discipline for the undisciplined .
Instead of looking at the US, Brian Gaynor could have written a more relevant article had he quoted NZ companies.
HBY is a good example of what a company should be doing.Instead of making another poor acquisition, they would be better to do a decent share buy back,and sell off their non core businesses, and concentrate on their excellent motor/equipment divisions.The market would positively rerate them very quickly.
I believe HBY are tryingto divest their shoe business
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01-05-2016, 06:43 PM
#1243
Member
Originally Posted by Harvey Specter
Yes. But at least CEN was very clear when they announced theres that they were generating excess cash and there were no suitable investments in the near term. I assume they have used all IC's so this is the most efficent.
On that basis, I think most would agree it was a reasonable course of action, if not the best. If they were increasing borrowing to do so, or forgoing investment opportunities, the situation would be different.
Yes, Also there's not as many opportunities for the utilities to grow their business as there is for others for example technology companies.
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01-05-2016, 06:50 PM
#1244
Originally Posted by Fisherking
Yes, Also there's not as many opportunities for the utilities to grow their business as there is for others for example technology companies.
Really? That's debatable.
Last edited by Hectorplains; 01-05-2016 at 07:07 PM.
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02-05-2016, 04:29 AM
#1245
Originally Posted by Hectorplains
The 'logic' is around share price being lower than the company feels is warranted (and it is therefore a good investment) and/ or that the cost of borrowing being so low currently that a buy back offers holders the best means of utilising free cash flows ( as opposed to un-imputed dividends etc.)
Thanks Hector.
But, as a shareholder, I still find it strange that the company should pay someone else to stop being a shareholder, rather than just paying me!
No, scratch "strange", I stand by "insane".
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09-05-2016, 12:53 PM
#1246
Cen running up quick. Glad I bought for the first time for the yield at $4.60. Now I'm getting some nice capital gains. I believe this company should be sitting around $5.80- $6. Only worry has been loss of customers but that looks to be coming right.
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09-05-2016, 12:54 PM
#1247
Nice lift in price today and at good volume. Even if most of the sales are off market.
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09-05-2016, 01:01 PM
#1248
Yeh really good volume. Possibly accumulation by a fund? Anyway I guess there is no point speculating - just enjoy the ride and divs
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13-05-2016, 12:42 PM
#1249
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16-05-2016, 10:24 AM
#1250
Can someone give me a bit more knowledge and education around reading operational data? and what the factors mean etc?
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