weak pound, share buy back, ftse at all time high! just need another euro nuke or the pound to rise sharply or even a bit of bad news regarding the trial, then will fall back a fair bit i think. probably will get all three at the same time just after i top up.
share buy backs are a way of giving vlue back to shareholders much in the same way as paying a dividend, as the value of the company is then based on a new, lower number of shares, which should impact positively on the share price. Companies tend to prefer this rather than hiking the divi if they have a one off cashflow (i.e. sale of an asset etc) as if they hike the divi they are generally committed to this going forward ad infinitum as a subsequebnt decrease in the divi in the future would be seen negatively in the market, hence the buy-back route..
Ok why does a company buy back its own shares? Looking at making BP part of my SIPPS pension profile. Is it a good move looking at 20k got in good with Barclays and Tesco back along. Looking at putting it in for 5 years ?
No chance. I'll eat my hat! BP buyback scheme has propped up the SP since January and each day they buy back 4 million shares. At that rate it'll take them into 2014 to finish so just in time for all the good news from the trial to send the SP soaring.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.