RE:RE:Share buy backs do not serve Share HoldersKelt performance for a company with a 1.2 billion marketcap, will be realized in a higher NAV value.
The evaporation of capital, at a typical buyback rate in not a genuine return for shareholders and is only done when the FCF is that, meaning at times where we are experiencing higher commodity prices.
These companies are still carrying huge debt loads and buy back shares when the commodity prices are good.
I guess this so other people can get a better deal when commodity prices are bad, like when pou bought 37 million shares of NVA for 60 cents, now they are 13 dollars and buying back their shares.
Share buybacks are the worst us of share holder capital. Try running you home with giving your family stability and not having a dime in the bank. Doesn't work to well, especially when the banks are tied into the Federal government.
IMHO