Member Info for Gate13Boy

SteJ

From your own link.

"In theory.. no. Stock buybacks do not improve the fundamental strength of the company. It merely reduces the total number of shares outstanding and since fundamentals haven't changed, the intrinsic value of the company shouldn't change. In other words, the stock price increases but the market capitalization remains constant"

Jeez Epro,

You are having a bad night.

Good riddance to him. He was an awful education minister.

hardup,

When I asked that question of Epro, his reply was "Gateboy. The answer to your hypothetical question is the share price would collapse."

I can't be bothered now and take my hat off to LTI for replying still.

hardup

"Quick question
If the company bought back half the shares would the SP increase?"

Yes he did answer hardup. He said the share price would collapse lol. Have you ever heard anything so stupid ?

You've more patience than me LTI lol

Epro,

"Market cap is determined from share price and number of shares in issue. Share price does not result from market cap."

Yes I know that thank you. I said for the same market cap did I not ? Working backwards, half the shares, double the share price.

I give up with you.

Epro,

I have said without any market movements for other reasons (sentiment etc). Pure mathematics. Are you deliberately being unintelligent ?

Epro

Ffs. I said HYPOTHETICALLY to illustrate the mathematics. Do I really need to keep repeating myself ? I couldn't give a f*ck about people losing their minds. That's is a totally irrelevant.

If the market capitalisation remained the same, if you half the number of shares in issue, the share price would double. Yes, just like a consolidation. Remove shares from the register and share price will go up accordingly.

You made no reference to going back to 2010 in your claim. The simple fact of the matter is that buybacks, when they have occurred, have more than adequately exceeded any block listings during the period of the buybacks.

Give me strength Lord.

You really need to work on your maths Epro. If half the shares were bought back at 43p, the share price would be 86p without market movements for anything else which is what I stipulated in the question in the very first place to AndAnotherThing if you care to look.

This is like pulling teeth with you.

Epro,

You are being particularly dim this evening. I said HYPOTHETICALLY. Do you understand that word ?

So if a buyback were done that removed half the shares at 43p, the share price would collapse would it ? You shouldn't be investing fullstop and if I was you, I'd go back and learn maths again.

Epro

"Gateboy. The answer to your hypothetical question is the share price would collapse"

Looks like you didn't do very well at maths then at school.

Since Feb 25th when the buyback started until it finished there were 3 block listings - RNS dates Feb 25th, May 9th and Aug 4th totalling 692m shares which were added to the register as opposed to some 4.5bn shares removed by the recent buyback. So saying the buyback is mostly offset by share issues is just plain rubbish.

Epro,

Get a grip. I'm asking him a hypothetical mathematical question to see if he understands the effect of removing shares from the register.

"The buybacks mostly offset share issues" What utter uninformed cr*p. Why don't you check the facts first before making claims like that ?

Aat,

If the buyback had been sufficient to remove half the shares on the register at say 43p what price do you think Lloyds would be assuming there were no market movements for anything else ?

Yes it does livestock. But the mathematics also says if you remove 4.5bn shares out of 71bn, the share price will increase by 4.5/71

livestock

“ Like I said did nothing for shareholders, I invest in Lloyds for a return on my investment”

It increased the share price by about 2.2p which is over 5% at the current price. So how is that not doing anything for shareholders ?

others.