Buying up big, page-10

Good post mate. I might be wrong but you seem to have misinterpreted what a buy back is and it may confuse others reading your post. Buy backs are different to Consolidations.

Consolidations are what you stated where the company literally divide everyone’s shares by say 10 and with the Market Cap obviously staying the same, the price of everyone’s shares is multiplied by 10. In theory it shouldn’t have an effect on the market cap (most important).

Where as a buy back is where the company buys shares that are on the market and they “disappear” so to speak. It’s the opposite of issuing shares where they get money, they are buying shares by paying money. Obviously, this in theory should have a positive effect on the share price. Not only will more buying reduce big sell walls and increase the price naturally that way, but by buying back shares and there being less shares outstanding, the same market cap will give everyone a higher price per share. I personally think it’s worth it but there’s many schools of thought on the merits of what to do with spare capital.