Read my previous post on the theoretical side of on-market...

Read my previous post on the theoretical side of on-market BB’s.
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”All other thing being equal”; these words confirm it is simply a theoretical concept that may not be fulfilled.

So far it amounts to the board squandering monies on a statistical change -EPS- and failing to gradual increase the SP.

Normally the excuse for the board to initiate a BB is the board believe the stock is undervalued.
Theoretical the BB should be gradually increasing the SP!

The excess funds that should have been distributed to the majority of shareholders is being sacrificed for the benefit of the T20.

When the professional talk about the efficiency of on-market BB’s, it is because it gives them the option to dispose of shares at a lower tax thru capital gains.
It means that board is catering for whims of the T20 at the expense of the majority of retail shareholders who generally hold their shares.

I can recall getting a capital return from AMP and all I simply had to do was adjust the cost base.
To the T20, such a distribution would involved them paying greater tax.

So far no one has tried to debunk my assessment of the detriment of the BB for the majority of retail investors!