sharetrader
Page 4 of 148 FirstFirst 123456781454104 ... LastLast
Results 31 to 40 of 1478
  1. #31
    Legend
    Join Date
    Apr 2008
    Location
    Sth Island. New Zealand.
    Posts
    6,428

    Default

    Quote Originally Posted by Master98 View Post
    Seems Labour and Green speakers don't have the basic knowledge about the stock market, or just simply against anything related to National.
    Yes, it's politics. Labour/Greens have done everything possible to sabotage this float, which has lessened the price the taxpayer receives. That includes Parker completely discarding his analysis of electricity retailing and going along with their nonsense proposal purely in pursuit of power. They are quite delighted that they have managed to destroy the value of the power companies. Frightening stuff.

  2. #32
    Advanced Member
    Join Date
    Apr 2008
    Location
    Kerikeri
    Posts
    2,468

    Default

    I think anyone who thinks that this buyback by MRP is not politically motivated and driven and timed is very naïve.
    Who appoints the board ? The shareholders. Who was the only shareholder when the current board were appointed ? The government.
    They will do anything they can to try to support the Meridian float. And they need to....to get the best return for the crown.

    What a money go round.

    Disc. Hold MRP, wavering on whether to purchase Meridian or not.

  3. #33
    The past is practise. Vaygor1's Avatar
    Join Date
    Dec 2012
    Location
    Northland
    Posts
    923

    Default

    Quote Originally Posted by surfersteve View Post
    "Hold MRP, wavering on whether to purchase Meridian or not."

    if the share price is cheap why not buy it back

    yes its probably been discussed with the major shareholder but its hardly anything but good balance sheet management and provides support for all shareholders and future shareholders

    MRP is a good long term hold and at 2.17 it was the time to buy

    becuase its under priced so good on them
    I agree whole-heartedly.
    This is an excellent signal to buy more.
    MRP have timed this well, knowing that a lot of short-term-thinking people/institutions will likely be selling MRP to go for Meridian thus dropping the price further (now counteracted my MRP actively scooping them up).
    MRP's board know so much more than anybody else regarding their own Company's future.
    If the board believes the Company's share price and true value is $2.75/share now (as the institutions do) and $3.00/share in 6 months after positive announements, then buying around $2.20 gives an 80c/share return over 6 months = 74%/annum ROI. Far better return than repaying debt.

    If enough people sell MRP to buy Meridian, you might find MRP complete this buy-back in less than a month... and then they'll announce another one.
    Also, I get to increase my %age ownership of MRP and my dividend by 2%, for free.
    Last edited by Vaygor1; 11-10-2013 at 12:15 PM. Reason: fixed up last sentence.

  4. #34
    Senior Member
    Join Date
    Mar 2001
    Location
    Auckland, , New Zealand.
    Posts
    1,408

    Default

    Peter Lynch (One up on Wall Street) is a big fan of share buybacks, which I agree with on the whole.

    The funds used are excess cash?? but what I'm not quite sure on is what is meant by being held as Treasury Stock, does this mean for example there were 100 shares in total, they buy back 10 to be held in Treasury Stock, does this not mean that there is still 100 shares and therefore the value is still the same, so how has "you and me " as shareholders gained anything . I must be missing something - probably are :-)


    Disc: Not a holder at present - made a small profit on the ipo though.

  5. #35
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    All this talk of government/board conspiracy reminds me of the old, now non-pc saying about N's and woodpiles. I'm not sure that there's a woodpile here, let alone an n! Just good balance sheet management and a bit of fortuitous timing!

  6. #36
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    QUOTE[
    The funds used are excess cash?? but what I'm not quite sure on is what is meant by being held as Treasury Stock, does this mean for example there were 100 shares in total, they buy back 10 to be held in Treasury Stock, does this not mean that there is still 100 shares and therefore the value is still the same, so how has "you and me " as shareholders gained anything . I must be missing something - probably are :-)

    QUOTE=Jay;432118]Peter Lynch (One up on Wall Street) is a big fan of share buybacks, which I agree with on the whole.

    It has the same status as "nominal" capital used to have in the days when companies had a nominal, as distinct to actual, issued capital. No effect until it is re-issued for cash or other consideration. Meanwhile, shareholders benefit from proportionately bigger shares of the pie!
    Last edited by macduffy; 11-10-2013 at 12:44 PM.

  7. #37
    Guru
    Join Date
    Feb 2005
    Location
    Auckland
    Posts
    3,115

    Default

    Quote Originally Posted by Jay View Post
    but what I'm not quite sure on is what is meant by being held as Treasury Stock, does this mean for example there were 100 shares in total, they buy back 10 to be held in Treasury Stock, does this not mean that there is still 100 shares and therefore the value is still the same, so how has "you and me " as shareholders gained anything . I must be missing something - probably are :-)
    A company can hold upto 5% of its shares as treasury stock. If it buys more than that, it must cancel them.

    The shares lose all their rights while held as treasury stock so no dividends or voting etc so that is why you benefit.

    The benefit to the company in holding treasury stock is they can sell them again easily without needing to do reissue/capital raising, as would be the case if they cancelled the shares.
    Free delivery worldwide with Book Depository http://www.bookdepository.co.uk

  8. #38
    Senior Member
    Join Date
    May 2011
    Location
    Bright Side Pl
    Posts
    753

    Default

    Quote Originally Posted by CJ View Post
    A company can hold upto 5% of its shares as treasury stock. If it buys more than that, it must cancel them.

    The shares lose all their rights while held as treasury stock so no dividends or voting etc so that is why you benefit.

    The benefit to the company in holding treasury stock is they can sell them again easily without needing to do reissue/capital raising, as would be the case if they cancelled the shares.
    clear as mud! cheers

  9. #39
    Guru
    Join Date
    Apr 2003
    Location
    Wellington, New Zealand
    Posts
    4,876

    Default

    Quote Originally Posted by CJ View Post
    A company can hold upto 5% of its shares as treasury stock. If it buys more than that, it must cancel them.

    The shares lose all their rights while held as treasury stock so no dividends or voting etc so that is why you benefit.

    The benefit to the company in holding treasury stock is they can sell them again easily without needing to do reissue/capital raising, as would be the case if they cancelled the shares.
    Thanks for that CJ. Something I was not aware of. That makes sense and easy understanding.

  10. #40
    Senior Member
    Join Date
    Mar 2001
    Location
    Auckland, , New Zealand.
    Posts
    1,408

    Default

    Yes ditto to what balckcap said Thanks CJ
    Last edited by Jay; 11-10-2013 at 02:19 PM.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •