I understand that people have a different view regarding this buyback. I just wanted to give this argument a little bit of balance. People had written even asked the question why the share price had not risen with this announcement. So I gave it, obviously to the disgust of some.
I dont see the buyback as an outright negative, it will give the share price stability and with it running around on a 7% yield and a P/E of 4 is just down right ridiculously cheap.
My thoughts just relate to people knowing about the stock and it not be liquid enough, so why not increase the base than decrease it? I dont mean split it in half, just something like 1 or 2 shares for every 10. A bit like Medusa earlier in the year. It was one of the reasons why the insto's wouldnt go hard at it - liquidity.
We know tht some people wont buy stocks if it doesnt have liquidity, we've all owned stocks like that. It can work with you, but also against you.
All the best, I hope it goes up.
Pep
DGX Price at posting:
27.7¢ Sentiment: None Disclosure: Not Held
