RE:BuybacksBuyback program hasnt ended. It is just beginning.
liljohnnyjoke wrote: Management of every company that announces buybacks feels that the current share price is way undervalued.
But the market feels the share price at that present time is fair value for the company at that time. If they felt it was worth more then the share price would be taken there by the market.
Instead the company (via buyback rep) starts placing big market orders to drive the price up, maybe causing some short covering driving it up further. When they run out of cash from buying back much higher than the market had valued it down she goes, hedge funds shorting it all the way down to below when the buybacks announced. Now share price of company is less than before because no buyback program.