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07/06/24
01:52
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Originally posted by danbradster:
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If it's undervalued, and cashflow positive, then a buy-back can be a guaranteed benefit for continuing holders. Unlike the other options from using the cash - marketing, products, dividends, staff, acquisitions. Those can waste cash, as was seen with the inefficient advertising and over-staffing, or they can deliver a lower return than a buy-back. Especially at a time of lowered market interest.
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look selfwealth was doing great before during covid.. but brooker are offering $5 to $3 trade....with hin... they losing market share and sentiment is bad... they need to expand to other segments... like cfd or forex... the buyback is bad... it not like they got lot of cash in hand.. people will keep shorting it... you only buy back if you got lot of cash and paying dividends.. swf... should use the money to invest in other stuff..