RE:RE:Benefits and Negative of share repurchase programGiven 300000 shares with world class extractions, not sure what the deal with FSD is. Just to straighten that up Graham.
GrahamB wrote: Yes, but if you understood the article, you would not have posted this if you are trying to pump the stock as you clearly are.
Why?
1. One of the key benefits, as the article outlines, is that by reducing the share count, the earnings per share will increase. The problemwith this little piece of financial engineering , is that FSD, has only lost money, and has had essentially no operational earnings making this particular maneuver useless.
Dividing a number by zero, is still zero.
2. Reducing the share count CAN return wealth to the shareholder by reducing the shares outstanding, increasing your fractional ownership.
For FSD this is nonsensical, given the fact they issued almost 2 billion shares initially, then they did a 201 split decimating the share price, and have been subsequently rewarding themselves millions and millions of shares, through options and warrants(Which I understand you were offered as well).
It is ridiculous , and insulting to shareholders, to suggest as you have that buying back a few shares , in the context of this massive dilution would have any impact at all.
What is the real reason for the repurchases ;)
Reposting another persons work only is effective if it makes sense.