What is the advantage in buying back shares? Does it boost the earnings per share? If so, we do benefit with dividends don't we? For example if there are 10 shares and they earn $10 then each would get a dividend of say, $1. However, after buying back say 5 then the holders get $2. Am I right?
Secondly, why buy back shares with money they originally got from holders? I thought they needed the money to invest? If there is no investments available then that is not a good sign is it?
MHH Price at posting:
$1.56 Sentiment: Buy Disclosure: Held