Thanks for the opinions. You make some good points. Pear, I...

Thanks for the opinions. You make some good points.

Pear, I believe buy-back are a good thing if the share price is undervalued. I also believe that buy-backs announced when a stock is overvalued is a bad thing. The connection I'm making here is that if you think management is buying back shares that are overvalued then you may also think the shares are overvalued and therefore you should sell.


You say "If there is an increase in dividends, it definitely will have nothing to do with the buy back." I disagree with this completely. If the number of outstanding shares decreases, an increase in earning per share will happen provided that the companies profit is at least maintained.

Mickeebee, how can you say buy-backs do NOTHING to increase a share price? CSR has clearly jumped since the buy-back. Where do you think the share price would be if it wasn't announced? I say it would still be trading in the mid to high $2's. This buy-back has essentially alerted the market that the company believes that the stock is cheap. This lends support to the share price and ultimately provides security for holders. When the last set of results was released we saw the share price jump to $3.33 only to see it fall to $2.41. Why is that? Nothing has changed fundamentally with the company. This buy-back provides holders with some security which I like.

"Cap growth will be achieved better through a progressive divi policy which CSR could have provided us." How's that progressive divi policy working out for BHP holders?