Putting in simple terms. Company with 200m shares.makes $20m net...

Putting in simple terms. Company with 200m shares.
makes $20m net profit annually. =10c per share.
If shares cut to 100m = 20c per share.
long term holders must benefit.
But short term holders would prefer cash,
then get out of company.
Good directors will not buy non performing assets
Also some directors prefer developing core business.
Conclusion company worth depends on how good and share holder
friendly the directors are.
It's up to you to reinvest if you disapprove of your directors.