Post by
marketsense on May 25, 2022 8:44pm
Curious
Bought in several weeks ago thinking it was a good buy considering the dividend payout
and relative safety of our big six banks. Then the announcement of a share buyback
comes out of the blue and BK moves up smartly. My question is why are they doing
it? Do they have extra cash lying around and secondly, is BK so undervalued that
mgmt feels its the best option for them at this time? Curious for some analysis from
those who might have a better handle on this split. Thanks
MS
Comment by
Kadiddelhopper on May 25, 2022 9:58pm
I have heard this to be a kind of Defensive posture, the Company puts together and gets Approved annually...just in case it might be needed in troubled Market. The current one from 2021 to just about now is expiring with no Buy-backs having been required, and expect that this new one will be put on the shelf for the coming 12 months, " just in case "!
Comment by
deisman03 on May 25, 2022 10:02pm
If the price drops to close, or below NAV, they "might" buy back units to prop up the price at NAV Right now, IMHO, all of the banks in Canada as well as the rest of the world are very heavily invested in China/Korea/Brazil/India. Keep an eye on those economies to see where their NAV is headed.