Share Buybacks

[bigdog]

Read an article this month about company share buybacks which I can not locate.

The artcile suggested that the share buybacks were very attractive and profitable for fund managers and that the SP generally increased and profits were to be made after the buyback announcement!

Do members agree with this statement?

If so, I would like to see this forum compile a list of current companies where buybacks have been announced and where profits can be made.

Are there links that identifies current announced company share buybacks?

 

[bvbfan]

I think the article was in SmartInvestor magazine. But I do agree to a point.

Some companies do buybacks because management can find no better use for the company, other might use the money to do an acquisition.

I guess it depends on ones own views on outlook for the company and sector at the time which you'd prefer.

 

[Garpal Gumnut]

Read an article this month about company share buybacks which I can not locate.

The artcile suggested that the share buybacks were very attractive and profitable for fund managers and that the SP generally increased and profits were to be made after the buyback announcement!

Do members agree with this statement?

If so, I would like to see this forum compile a list of current companies where buybacks have been announced and where profits can be made.

Are there links that identifies current announced company share buybacks?

It also depends on your marginal tax rate, SMSF 's are on a winner, as the buyback price on large stocks eg BHP, FGL, often have a large fully franked element factored in with a small capital component, which magnifies the profit after tax.