There’s been a fair bit of discussion about a share buy back to improve GXY sp, and I thought I would have a look at the effect buy backs are having on market at the moment.
Having a few QAN shares I knew they were currently carrying out a $332m buy back and checked a few numbers.
Apologies in advance if I have made any errors in my calculations or have overlooked any glaring anomalies in share choice or external factors, but it’s just for a rough comparison.
Like all shares exposed to the price of oil and international trade, QAN is expected to be moving into tougher trading conditions, but I think that is a little like lithium oversupply/pricing rumours for GXY.
From the QAN announcements on the ASX:
Date started 10 Sep 2018 share price @ close $6.20.
Yesterday 31 Oct share price @ close $5.47
QAN sp down approx 11.8%
To compare with the market over the same time frame:
ASX S&P 200 10 Sep 2018 6141.7
ASX S&P 200 31 Oct 2018 5830.3
S&P 200 down approx 5.1%
Shortman figures for QAN:
Sep 10 0.26%
Oct 25 0.24%
Maybe a buy back isn't always the best allocation of capital. I wan't GXY to stay as liquid as possible to promote growth as fast and strategically as possible.
Banter and General Comments, page-736
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