LVT 0.00% 0.6¢ livetiles limited

Buy-back?? Criticism of Buybacks A share buyback can give...

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    eek.pngBuy-back??

    Criticism of Buybacks

    A share buyback can give investors the impression that the corporation does not have other profitable opportunities for growth, which is an issue for growth investors looking for revenue and profit increases. A corporation is not obligated to repurchase shares due to changes in the marketplace or economy.

    Repurchasing shares puts a business in a precarious situation if the economy takes a downturn or the corporation faces financial issues it cannot cover. Others allege that sometimes buybacks are used to inflate share price artificially in the market, which can also lead to higher executive bonuses.

    LVT executives must be rubbing their hands and dreaming.

    All cards are opened and the company is in deep sh.t.

    DYOR
 
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