RE: 300mil Share Buy Back....8 Aug 2022 13:36
I assess UK stocks as well as S&P 500 stocks and S&P 600 mid cap stocks. Whilst US indices have generally done better over recent years, you have to allow for the fact that FTSE stocks, especially FTSE 100 stocks favour the dividend, S&P 500 stocks tend to split the payouts between the divi and share buy backs. UK investors can be a little suspicious of buy backs, simply becuas they are less commonplace over here. Personally, I prefer the typical US approach of a largely equaly split between divi and biy backs, perhaps 60/40 in favour of the divi is my preferred ratio and that is probably the S&P 500 average split.
So yes, all for Abrdn buy backs. Tomorrow's update won't necessarily be pretty, the negative campaign won't just impact the share price, it will impact money volume inder management, which will have fallen, but of course that we will be the case for all businesses managing money at the moment.
Lots of moving parts with Abdrn at the moment, which the short campaign has taken advantage of. This is no deep conspiracy campaign, short campaigns are distasteful, but commonplace, participants don't necessarily communicate with each other directly, they just look at the short build up, look at the excessively negative comment and jump on the band wagon, it happens all the time. Not sure why Abrdn was targetted as it is far too strong to be an obvious target in my view, perhaps all the change, the fuss over rhe rebrand, etc, I like the rebrand personally, so momentum built and the short campaign worked. If you look at IC's recent couple of write ups, it went from sell to hold a few months ago, despite the article being utterly negative, so why go to hold? To be able to get out another article of course, once they go to sell, they don't usually allow another article until the recommendation changes, so go to hold but incrediably negatively, then a few weeks ago, before the results bizarrely, go sell again and just rubbish the business utterly, very much under the guise of get out out now before it is too late! But look at the equity build, the divi, the tangible book value, the buy backs.
I have complained to IC, they won't answer of course, they stopped reader comment a few years ago, very thin skinned, interesting to see if they change the writer for Abrdn's H1 write up if there is one.
I should not complain really, this kind of scenario allows me to make major gains, I would stress that I have never shorted Abrdn and I have never supported the negative comment. Again, I do not suggest that anyone posting negatively here is necessarily playing the short game, negative Abrdn commnt has become infectious, every action they take tends to seen through the negative lens, you know, the unfortunate employee at work who everybody seems out to get, whatever they do is spun negatively. H1 won't necessarily be pretty, but in light of the pricing, which is now suggests imminent business collapse, Abrdn looks good to me and is my single largest holdi