RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:TD Upgrade
I'll chime in here. WFG bought ~700K shares this week. They have accumulated 1.3 million shares that are set to be cancelled. As a result of the cancellation, it does not impact the share price directly. Instead, when WFG bought these shares, there was upward buying pressure on the stock. When WFG cancels these shares, it does not cause the remainder of shares to ratchet up to compensate and maintain the same market cap. In that way, it is different from dividends. Dividends reduce the price a share on the ex-divividend date and then normal supply-demand mechanisms kick in for that trading day. Later on, when EPS numbers are released, we will see a small benefit there but there is no other mechanism that would trigger prices increases. We are also seeing 2% daily moves while WFG buys back blocks of stock. Even if the market cap dynamics were in place to have share price move with stock outstanding, these daily price changes would vastly outweigh the amount of stock repurchased for cancellation. (Meaning WFG is not buying back 2% of the stock daily, more like 0.1%) I hope that makes sense.