is the market missing beach energy’s potential, page-23

Wacky,
When companies do share buybacks it distorts the supply and demand for the shares and temporary pushes up the SP.
The shorters know this and short sell at the temporary higher prices and then buyback later when the buyback finishes.
They also buy in advance of the buyback to push the price up so that the company buying back the shares has to pay more for them.

I have seen many companies do buybacks only to later have to raise cash at a much lower SP.

Linc enery bought shares back at around $3.00 and ended up having to raise debt at over 10% as they ran out of cash.
The SP ended up at below $1.00
There were other reasons for the drop but they had $500M in cash before the buyback and now have $600M in debt which shows how things can change.

I agree with gassed in that the market long term will always determine the SP.
There is so much manipulation from the hedge funds and shorters that you are fighting a losing battle if you try and compete with them.

Regarding not affecting the earnings, it does as the $300M spent on the buyback would have either received interest on it which would go straight into the P&L or if they borrow the money they have to pay interest which also goes straight into the P&L.
Money is not free.