Baytex Energy Corp T.BTE

BTE LEVEL 2 - WALL MOVED TO $5.41

[riddler]

18	25400	5.39
15	52400	5.38
19	178000	5.37
26	169900	5.36
34	212100	5.35
18	86600	5.34
18	167200	5.33
16	96600	5.32
11	32700	5.31
24	45500	5.30

Level 2 quotes summary

Ask	Total size	# of ordersNumber of orders
5.40	55700	36
5.41	112300	19
5.42	138400	16
5.43	140500	20
5.44	141800	16
5.45	216100	25
5.46	105300	14
5.47	111000	6
5.48	100900

[Kelvin]

Yup, this is where AI and their high frequency trading (HFT) bots come in. These guys have millions of shares in reserve in order to manipulate markets. Someone mentioned that bte is buying back shares. They'd want to do it as cheap as possible cause the cash comes from earnings and the cheaper that they can buy them back at then the higher the net income. Now imagine that they announce a big

[1234bmth]

Buying back shares doesn't affect net income because it is not an expense , buyback is paid from free cash flow which is after all cash payments of the company and it is affecting retained earnings, yes, it is beneficial to buyback shares cheap so they can buy more shares for less cash and absolutely doesn't touch operating income nor net income.

[Kelvin]

Ok thanks for that 1234 bmth. I stand corrected. I checked. You're right. Operating income is revenues minus expenses. So the money comes from the cash account in the statement of cash flows. So why is Buffet mostly against share buy backs? Probably because the net effect is to lower total assets. You have to convert assets into cash to buy shares that you'll just end up retiring and of no

[dllscwbysfn]

 If they had 1000 shares and they bought back 950 shares do you not think that the value of those last 50 shares would be much greater than if they had not bought back shares?? what if it was 999shares bought back.  It also has a pretty decent effect on dividend payouts

[Kelvin]

dllscwbysfn, OK the following is what I've learned so far: Total Assets = Liabilities + Shareholder's Equity. For a given amount of liabilities, when you reduce total assets by say $1000 then you reduce shareholders equity by $1000. So shareholder's equity = total assets - liabilties. Say you start with $2000 in total assets and $1000 in liabilities so shareholder's equity is

[dllscwbysfn]

Your words "I have never understood how buying back shares increases the share price." Is this not the exact opposite of increasing the number of shares??If you increase the number of shares does the price not go down??

[Kelvin]

dllscwbysfn, Not in all cases does the sp go down if I issue more shares if total assets go up by an equal or greater amount. If I'm a wildcatter with 500 million shares outstanding worth one penny and find 300 million barrels of recoverable oil offshore worth $5 per barrel in-ground to a major who can produce it and issue 500 million new shares then the sp on 1 billion shares outstanding will

[dllscwbysfn]

lol, really. Sure if you change the parameters you might make your case but other then than that you are argueing for the sake of argueing. Please do not respond as I will on my side of this conversation now, thanks bye

[1234bmth]

Buyback in fact is another way of distributing assets to shareholders in this case cash which reduces total assets, but increases the percentage of ownership for remaining shareholders by canceling the shares bought back. Me too personally prefer dividend over buyback unless the company can buy backup 20%+ of its outstanding shares annually, historically most companies buyback shares then they

[Kelvin]

1234bmth, I prefer paying down debt when interest rates are high and borrowing money like crazy and spending on capex expansion and/or M&A when interest rates are low.  It must drive these financial guys crazy trying to predict what the Fed and BofC will do. We need stability in interest rates badly.

[1234bmth]

Paying down debt is my periority as well, I was comparing buyback vs dividend. Nothing is better than a strong balance sheet.

[jleer42]

Think about it more like you have cash and need to decide what to to with it. Common uses are to invest it in your own company (why growth companies do not pay dividends), hang on to it for future uses, and pay it back to shareholders. If you pay it back two possible choices are cash dividends and share buybacks. If you get the cash you can invest the money in whatever you want including buying

[Kelvin]

Ok jleer42, Point well taken. It's all about getting the best bang for the buck. Yeah Buffet isn't totally against share buy backs but my accountung book says that he feels that the right conditions must exist. When the Fed was shovelling money out the door for free essentially during quantative easing share buy backs reflated the markets and I bet that Buffet was real happy about that.