A buyback creates value when the cost of buying the share back for the company is far less than the fair estimate of its value when you look at a company’s future dividend or earnings streams . Whc definitely falls in this category as it’s trading on a P/E ratio of probably under 2-3 times forward earnings at present , which is insane , so the market is not valuing it correctly in short . The whole green lunacy that infects most of the world today is at play here . This share on fundamentals alone should already be at 10 dollars plus , it’s not because of the said green politics at play infecting and biasing peoples valuations of many larger institutions . The boundaries of rational thought and analysis stop once you start talking coal stocks .
So if the marginal seller in the market is willing to give up their shares for well under fair value , then really what happens in the long run with a buyback is the denominator of shares issued goes down via the buying back , which actually drives up the value of each remaining share more , so if executed properly it becomes a wealth transfer from the impatient to the patient ………. Where have I heard that before , that’s right a mr Buffett has said this many times when discussing investing .
This is why I hope they will continue buying back shares , not because I have any intention of selling and realising a 50% cgt saving . Rather I am more interested in the value of each slice in the company going up which is what a buyback does and then over time that also means a higher dividend per share as your net profit has less shares to be spread over , for those who remain for the long term too .
As long as the market continues to be idiotic and fundamentally mis price the shares , and also provided we don’t need the funds for capex , which we don’t at present I say keeping buying back , the price will only go one way if these profits persist and that is up .
- Forums
- ASX - By Stock
- WHC
- Projected FY 2021-22 and Final dividends
Projected FY 2021-22 and Final dividends, page-24
-
- There are more pages in this discussion • 264 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WHC (ASX) to my watchlist
(20min delay)
|
|||||
Last
$8.61 |
Change
-0.060(0.69%) |
Mkt cap ! $7.203B |
Open | High | Low | Value | Volume |
$8.67 | $8.69 | $8.55 | $27.44M | 3.184M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
9 | 33063 | $8.60 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$8.62 | 5000 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 23780 | 8.600 |
1 | 10000 | 8.590 |
4 | 17416 | 8.580 |
5 | 53728 | 8.570 |
2 | 8242 | 8.560 |
Price($) | Vol. | No. |
---|---|---|
8.630 | 20090 | 4 |
8.640 | 2500 | 2 |
8.650 | 22416 | 4 |
8.660 | 13846 | 1 |
8.670 | 24751 | 3 |
Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
Featured News
TLX
Telix jumps 11.6% as US government indicates proposed medicare changes won't affect prostate cancer drug
RNU
Renascor wins a funding boost given it wants to produce a critical mineral – but $5M award pales in comparison to some
WHC (ASX) Chart |