Hi BionicBoy
The announcment today stated that SIP will buy back up to 9.9% of shares.
The buy back is on market, which means the shares are bought back during ASX trading hours. That is a broker acting on SIP behalf will be placing buys.
A buyback does support the share price. It also helps improve earnings per share as there are less shares.
Going back to the first point, SIP had intended to buy back 5% off market. However they could not come to terms with any of the large holders, who now wished they took the money on offer.
One could be cynical and say with the share price falling so much they can now afford to buy back more shares.
The increased buy back is a move to show SIP management have confidence in moving forward.
The buy back was also an attempt to lessen the impact of the profit downgrade.
It is also an attempt to regain confidence of the market.
If you look at todays announcment it was very cleverly worded and did NOT use the words profit downgrade.
SIP gearing is at 16% the buyback will increase this. With gearing so low I am sure it is being looked at.
Hi BionicBoyThe announcment today stated that SIP will buy back...
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