When your ROE is consistently in the 40s and interest rates are at these historic lows, I would argue that an aggressive stock buyback using debt is very smart. Debt is currently at less than 3x annual profits, which isn't too risky for a company like this.
I think the downturn is nothing more than big money shifting from Biotechs to Mining and Finance. When the big money eventually shifts back to Biotech, the gains will be massive as there is no reason to believe CSL's ROE will become poor. Same story for RHC.
Now, the tricky part is to load up at the bottom...good luck!
Ann: Daily share buy-back notice - Appendix 3E, page-5
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Last
$295.14 |
Change
1.440(0.49%) |
Mkt cap ! $142.8B | |||
| Open | High | Low | Value | Volume |
| $294.99 | $296.49 | $294.28 | $53.31M | 180.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 67 | $295.14 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $295.21 | 173 | 10 |
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| Last trade - 11.50am 26/06/2024 (20 minute delay) ? |
| CSL (ASX) Chart |