I think you'll find you are broadly incorrect. I'll write my bit and leave it at that. Won't be getting into weirdness on this issue.
If you spend $1.22 on buying back a share. Yes, you "lose" the $1.22 from cash BUT you decrease the shares on issue by 1. The current market value being $1.22 means its a zero sum gain. Not counting transaction charges.
The value comes from the view that KCN shares are actually worth more than $1.22 and thus whoever holds a share at $1.22 after a share has been bought back is ultimately winning.
The argument that 1 share worth $1.23 traded at the end of the day to move a share price from $1.22 to $1.23 changes the market cap by $2.57m dollars is a strictly correct but a little bit "stupid" because if you want to exit with say 1 million shares at $1.23 you can not. Also we are after a multi year buy back and do not care if the share price is $1.22 or $1.23 - we are looking at $4 or $5 and this is done by years of good management and buying back all the shares we can.
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I think you'll find you are broadly incorrect. I'll write my bit...
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Last
$1.38 |
Change
-0.080(5.48%) |
Mkt cap ! $355.6M |
Open | High | Low | Value | Volume |
$1.46 | $1.46 | $1.38 | $790.9K | 564.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 24999 | $1.38 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.40 | 2446 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 15000 | 1.355 |
1 | 3650 | 1.345 |
2 | 8000 | 1.340 |
1 | 6141 | 1.335 |
1 | 376 | 1.330 |
Price($) | Vol. | No. |
---|---|---|
1.420 | 40000 | 1 |
1.490 | 4258 | 2 |
1.495 | 7500 | 1 |
1.500 | 12112 | 3 |
1.530 | 11094 | 1 |
Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
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KCN (ASX) Chart |