Newstrike Brands Ltd NWKRF

RE:RE:RE:RE:i think company will announce major shares buyback

[matureinvestor0]

VeritasVern wrote: Immature that new article is about Namaste. You are clueless. So HIP does a financing at $1.32 and then buys back at $0.55. Brilliant that will really do down well in the market. Clearly you know nothing.

hey idiot


For example, let's assume a company issues 100,000 shares at $25 per share, raising $2.5 million in equity. An ill-timed news item questioning the company's leadership ethics causes panicked shareholders begin to sell, driving the price down to $15 per share. The company decides to repurchase 50,000 shares at $15 per share for a total outlay of $750,000 and wait out the frenzy. The business remains profitable and launches a new and exciting product line the following quarter, driving the price up past the original offering price to $35 per share. After regaining its popularity, the company reissues the 50,000 shares at the new market price for a total capital influx of $1.75 million. Because of the brief undervaluation of its stock, the company was able to turn $2.5 million in equity into $3.5 million without further diluting ownership by issuing additional shares.

Read more: Why would a company buy back its own shares? | Investopedia https://www.investopedia.com/ask/answers/042015/why-would-company-buyback-its-own-shares.asp#ixzz5Jk5Rrc5Y 
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