Depends on how you value the company. If you value it on book value then sure the buyback is offset by the loss in cash but if you are using earnings multiples then the earnings remain unchanged but number of shares decrease so EPS increases resulting in a higher share price. So I would say @successful is correct in that the price will increase due to the higher EPS (assuming earnings remain constant). If that didn't happen, then what would be the point of a buy back?
Ann: Share Buy-back Resolutions, page-41
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Last
$6.86 |
Change
-0.070(1.01%) |
Mkt cap ! $5.739B | |||
| Open | High | Low | Value | Volume |
| $7.00 | $7.02 | $6.80 | $39.73M | 5.777M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 100 | $6.86 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.88 | 8721 | 3 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| WHC (ASX) Chart |