Buyback Not Prudent for RUL Considering that the top 20 holders control 64.5% of shares (based on the last notice).
Instead, the company should focus on:
Controlled Dividend Increase: A gradual increase in dividends would be a more effective way to reward shareholders.Diversification and Growth: Pursuing acquisitions or increasing marketing and sales spend could promote diversification and organic growth.
A buyback in this situation raises concerns:
Unnecessary Share Price Increase: Pumping the share price may not be beneficial when the top shareholders already hold a significant majority.
Premium PE Acquisition: Buying back shares at a premium PE of 62 isn't a smart financial move in my opinion.
Ann: FY24 1H Half Year Investor Presentation, page-27
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Last
$2.64 |
Change
-0.040(1.49%) |
Mkt cap ! $589.8M | |||
| Open | High | Low | Value | Volume |
| $2.69 | $2.69 | $2.62 | $447.1K | 168.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 7581 | $2.63 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.64 | 224 | 1 |
View Market Depth
| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
$2.64 |
Change
-0.040 ( 1.01 %) |
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| Open | High | Low | Volume | ||
| $2.67 | $2.69 | $2.62 | 31647 | ||
| Last updated 15.59pm 14/06/2024 ? | |||||
| RUL (ASX) Chart |