@marcrae19
Well... Correct me if I am wrong, but isn't the potential SP appreciation from a buyback the ultimate measure of the "solid" return on capital. The value of the company is the SP x SOI.
You would agree that the SP doesn't ever have to "catch up" if the mkt decides otherwise or global conditions change... therefore it couldn't be regarded as a solid return on capital.
Last time we had a buyback, it was sold to the shareholders as making each share worth more ( it didn't) due to reduced SOI with the potential to see the Sp jump even further on the expected excellent results from the Brazil drilling campaign.( Kangaroo West the "biggie" was a complete failure ) however, If the Sp had jumped it would have made the buyback look a brilliant strategy.
End result: money gone, a lower SP and a company ultimately with less cash and lower capital value.
I supported the company against other posters with different views during the buyback last time... I was proven wrong
Ann: Morgans Mid-Cap Afternoon Presentation, page-18
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$1.83 |
Change
0.050(2.81%) |
Mkt cap ! $1.466B | |||
| Open | High | Low | Value | Volume |
| $1.80 | $1.84 | $1.79 | $8.392M | 4.606M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 6282 | $1.83 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.83 | 79500 | 3 |
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