Don't understandWhy there are always so many people against a share buyback.
Buybacks are best practice for every great company, and it makes so much sense for DM because:
- send bullish signal to market
- Company makes statement that shares are undervalued, so they are buying their own stock
- Takes stocks out of weak hands
- Can buy back 10% annually, so 30 million shares. This means that there would be an extra 300K shares on the buy side for 100 trading days of the year, bullish.
- If everyone belives the stock is worth 50cents to $1, where better to put the companies $ than an investment that can appreciate by 100-400%
I believe that at the very least evreyone should be pushing the company to implement a buyback program, as this gives the company the option to buy, but doesn't force them to buy any shares or all 10% of the program.
Can anyone explain the counterside as to why it is in the shareholders interest to not buy back shares at this price, especially with the comany generating so. much cash?