So, again at it's most simplistic assuming a zero tax environment, a buyback price of $21.00 and a 10% discount this would nett you $1.14 more than if you sold on market at $21.00.
But, you'd have to wait for the tax department to refund the franking credits to finally realize that $1.14 windfall. So probably 8 or 9 months.
Whats wrong with just giving everyone a special dividend of say $1.00? - This would end up being with $1.42 when franking credits are refunded. Remember - the reason WBC is cash rich is not due to any genius on the part of management but merely that they withheld dividends last year.
That they have realized the stupidity of this buyback scheme is now evident with their modification of the scheme. When it comes to management competence and ability, WBC definitely ain't no CBA.
How people that are paid several million dollars a year can be so "away with the faeries" simply beggars belief.
WBC Price at posting:
$20.92 Sentiment: Hold Disclosure: Held
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