FMG Dividend, page-53

It makes sense if the assets you are buying are worth more than you have to pay for them.
Eg. If the company buying at sub $4 mark represents a very good use of the cash.
there are countless examples of mining companies that should have done buybacks rather than other “smart investments”
take Bhp for example, they would have been better to avoid the shale assets to begin with, and just do a buy back from the start.

I love it the way fads come in and everybody jumps on the bandwagon.

BHP has just done a buy back at below market price and all is good (except giving away lots of franking credits). If I remember rightly, a few years ago, they did one at over $40. how does that look now? And when it dropped to $15?

Go over to Karoon. Did exactly what you suggest and bought back shares at $4+. Share price is now $0.85c. How does that go for people who dodn't sell?

Why on earth does anybody invest in a company if they don't believe that company will grow? Why do company list in the first place if we take your logic?

I accept that if company directors don't have faith in their own ability to generate superior growth then by all means do a buy back.

I would suggest to you that buy backs should be limited to companies like CSL which year in year out are generating excess cash to their investment requirements.
I suggest to you that we are not there! Hopefully some day though!

Pear