Member Info for longtimeinvestor

sj
sj
Assets (cash) comes off of the balance sheet but at the same time -
The share repurchases reduces shareholders' equity by the same amount on the liabilities side of the balance sheet..

buybacks are an investment in their own shares

ep
If the market cap rose alongside buybacks then the share price increase would be greater than with a constant market cap running alongside buybacks

sorry - fifth

sj
Assets (cash) comes off of the balance sheet but at the same time for the fourth
time -
The share repurchases reduces shareholders' equity by the same amount on the liabilities side of the balance sheet..

buybacks are an investment in their own shares

ep
''Market caps, like share prices do not always rise alongside buybacks.''

you can go round in circles if you wish meaning you will get no where.
The market decides the market cap on a daily basis.
With a constant market cap, share buybacks would increase the share price.

sj
ffs how many more times
buybacks are an investment in their own shares, not money that is thrown down the drain.Find yourself a brain or better research

ep
''buybacks often do not raise those.''

you can go round in circles if you wish meaning you will get no where.
The market decides the market cap on a daily basis.
With a constant market cap, share buybacks would increase the share price.

ep
have you a memory problem?
hypothetical

wouldn't be much of an investment spending £2 Billion for a £2 Billion reduction in market worth, would it.

sj
cash asj
Assets (cash) comes off of the balance sheet but at the same time for the fourth
time -
The share repurchases reduces shareholders' equity by the same amount on the liabilities side of the balance sheet..

buybacks are an investment in their own shares

ep
''hypothetical''

yes hypothetical - if £14 Billion worth of shares were purchased at a constant 43p in a single year and then the market cap returned to what it had been at the start of purchases, then the share price would have doubled.

Ditto to you - don't waste any more of my time.
Find someone else's time to waste.

sj
''That would be unchanged as they have swapped cash for an asset.
A share buyback is not that.''

It is just an investment in lloyds shares instead of the example HSBC.
For the third time -
The share repurchases reduces shareholders' equity by the same amount on the liabilities side of the balance sheet.

Do you understand?
I will keep it simple for you. If a business had a debt of £1 million and paid it off would that reduce the value of the business by £1 million?.

Clearly you have no understanding.
Please don't waste any more of my time.

ep
''What is your answer to that question?''

My answer is the the BOD have not got permission to purchase at the current valuation, £14 Billion worth of shares.
Profits are not enough on a yearly basis (further buyback permissions are given yearly if at all ) to be able to do so. It would take a number of yearly permissions to accumulate that amount in purchases.

sj
Lloyds have paid out about £22 Billion? on PPI and still worth £29 Billion

sj
''Based on your logic, lloyds could buy all it's shares back for £29bn, and still be worth £29bn despite paying £29bn out to people to buy the shares''

What would Lloyds market cap be if they bought £5 Billion worth of HSBC shares ?

ep
That is not what Gb suggested. He suggested it was done in "this buyback".

it is irrelevant over what period of time shares are bought back regarding your
''share price would collapse'' comment to which I was replying.

ep
''The answer to your hypothetical question is the share price would collapse''

Hard to believe that someone on an investors board could come out with that.
So if Lloyds purchased £2 Billion of shares in each of the next 10 years , the share price would have collapsed from the current 43p per share.
I think you need a good sleep.

sj
Just try to think of it as a £2 Billion investment.
Would Lloyds market cap go down automatically if they purchased £2 Billion in HSBC shares?
Obviously the answer is no.
They have invested in Lloyds shares instead.

ep
''Money leaves the company to buy back the shares, that reduces the mcap.''

do you not read?
Dividends are money leaving the company.
The sole purpose of the programme is to reduce the ordinary share capital of the Company.
At the same time as increasing per share metrics.
The share repurchases reduces shareholders' equity by the same amount on the liabilities side of the balance sheet.
In other words the value of the money spent is transferred to the remaining shares.

sj
Just try to think of it as a £2 Billion investment.
Would Lloyds market cap go down automatically if they purchased £2 Billion in HSBC shares?
Obviously the answer is no.
The have invested in Lloyds shares instead.

sj
''but how do you see the mcap being constant when assets are realised to purchase the shares?''

obviously you still haven't the understanding. A dividend payment are assets leaving the business.
The sole purpose of the programme is to reduce the ordinary share capital of the Company.
At the same time as increasing per share metrics.
The share repurchases reduces shareholders' equity by the same amount on the liabilities side of the balance sheet.
In other words the value of the money spent is transferred to the remaining shares.

I really am getting fed up having to post the same thing over and over and over again