-
Originally Posted by Master98
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.
-
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.
-
Originally Posted by surfersteve
"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 01:15 PM.
Reason: fixed up last sentence.
-
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.
-
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!
-
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 01:44 PM.
-
Originally Posted by Jay
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.
-
Originally Posted by CJ
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
-
Originally Posted by CJ
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.
-
Yes ditto to what balckcap said Thanks CJ
Last edited by Jay; 11-10-2013 at 03:19 PM.
Tags for this Thread
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks