StrategyNot sure why the negative press on the share buyback A strategy delivers results overtime. Share repurchase will and does create longer term shareholder value.
Combined with balance sheet improvement through debt reduction and i for one am liking the poential
- Assuming 70 million shares are repurchased this year (it will save su approx 58Mm annualized cash that would have been paid at the current div rate) once shares are retired su could increase div rates without increasing the amount of cash utilized
- Share repurchase improves finacial ratios
There are a number of benefits for sure .
What it doesnt do is put dolllars in your jeans today. Maybe thats everyones beef but the company has been very transparent on its strategy and is executing
The strategy is foundatioal to mid to long term share appreciation and i personally dont mind investing at these levels. Infact, once the train starts moving, i think shareholders will be rewarded in both share appreciation and sustainable dividend increases glta