RE:Share buybacks...interesting note from HFI research How a company allocates its resources is management's job and direct payback to shareholders via dividends and buybacks is when there are not more overriding areas. In general I don't like share buybacks, I would rather receive a dividend and decide where I want to invest my gains. Anyway, buybacks have pros and cons
Cons:
- invests in the company, which may be a poorer investment than would be made with dividends
- rewards company stock options by raising the SP
- means less money for debt repayment, CapEx, etc.
Pros:
- increases returns via SP increase
- cuts dividend payout cost via decrease share count
- sucks up share count to the detriment of short sellers
- capital gains may be more tax advantageous than dividends. BTX is traded in the US and US investors are better served by capital gains.