QUOTE(icemanfx @ Sep 11 2020, 07:47 PM)
shareholders normally buy back to prevent share price to drop below certain level e.g pledged margin price. company normally buy back in lieu of dividend payment.
if qr is better than most expected, share price will rise, company doesn't need to buy back or do anything. it is highly unusual for company to buy back when its stock is popular.
QUOTE(ChAOoz @ Sep 11 2020, 08:16 PM)
Buybacks is done when the company feel that the market is pricing it's share below its fair value or to provide support.
Buybacks is good overall for the share price presentations, as it's keep a strong demand in the market for the stock as well as provide a better EPS due to reduction in overall share outstanding.
The bad about buybacks is, if its done during when the share price is high then it will be a bad investment for the company in the long run when the share prices drop to a lower level later. In that case, it would be better for all the shareholder to be given an extraordinary dividend instead.
Clearly this is more of a short term move, and would hurt long term investors of topglove which prefer it to invest the cash into the long haul for stuff like R&D, factory expansion, acquisition target or even dividend so they can use the money in other stock with a higher alpha.
Its true whatever mentioned.. Buyback can be done to make your EPS larger also.. so can be cautious or be hopeful.. sharing article below
Share buybacks: The positives and negatives
https://focusmalaysia.my/opinion/share-buyb...-and-negatives/