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Chid, I’m glad to see you recognise that buybacks increase the share price mathematically. Half the posters on here don’t understand that and blame buybacks for the predicament of the current share price. When the market decides where the price will be, they fail to appreciate that shares move for all sorts of reasons and then claim buybacks are not effective. It is pure naivety.
Banks have been out of favour for years, it’s not just Lloyds. Covid, fears of a Labour government, recession fears and now this car finance nonsense have all weighed on Lloyds. Something always seems to come along. Reducing the number of shares seems an eminently sensible way of using excess capital when the share price is seemingly low.
Oh dear. Here we go again 🙄 Shares move for all sorts of reasons. The share price would be lower had it not been for previous buybacks.
Why do you think the magnificent 7 in the USA use buybacks mainly instead of paying out dividends ?