When I said "has ceased for now" perhaps I should have said "suspended".
Whilst it isn't specifically noted in their securities trading policy it is known among all companies on the ASX that buy backs should cease until after results are released to market. Obviously, the company knows information that others do not.
I still believe it will cease before September (if coal prices remain depressed). They are bleeding too much cash between 1 January and early July.
The 30% sell down of B&D (significant) the company's net income will decrease but the company will have the same amount of shares on issue.
We all know that EPS is calculated by dividing net income by the number of outstanding shares. If net income decreases, and the number of shares outstanding remains the same, then EPS will also decrease
Therefore what better way is there to boost EPS? Buy-back right? If the money is not needed.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)