Buybacks increase earnings per share as there are less shares in issue, some of the time it has a bad rep as been used a lot in the US to hit share price targets so management can get paid out on options cash outs.
The general jist is even if your company isn't making any more money if you start reducing the share count earnings per share goes up as less shares are now in issue so reverse dilution, management can say aren't we great earnings are going up and so is the share price but a lot of times its smoke and mirrors. |
I do understand the maths. My point was about the effect on market sentiment, which I didn’t see changing through share buy backs. |
And supports the share price when it drifts !!Look at funding circle ! They went from 40p to 146p |
Reduces numger of shares on market making it cheaper without reducing share price. |
s34icknote
CARD is grossly undervalued with 347.6 million shares in issue.
Why would reducing the number of shares through buybacks suddenly make the market value it more highly? |
May be card would have been better doing buy backs rather than divs ??? |
Yep - this would be right |
That's the greatness of the market !!Same as trump media that turns over a million dollars in revenue is worth 8bn dollars and bitcoin is worth 90000 dollars !!The market wants racey stocks !!! |
If EPS turns out to be 10p why is the share price only 80p when Moonpig also delivers EPS of 10p but its share price is over £2.50?
Also Moonpig pays zero dividends! |
Would bring yield to 5.6 percent |
Suppose to be 3 times covered So around 3p final ? |
Dividend unlikely to be 5.7p as the final dividend took into account that it had not been possible to declare an interim dividend because of borrowing covenants. So a yield based on a normalised dividend of 4.5p seems more likely |
2 months to go |
Last year was 7.9 p second half ?So my guess is 10p eps ? With 5.75 p div that's 7.18 percent yield at 80p Has this fallen too far ??Guess we will find out in January trading update ? |
Eps 3.1p , second half 6.2p min = 9.3p Cost measure and price increases to cover in second half ? So may be up side to 6.2p ? |
I thought we were told to expect news of who the US partner is before long. |
It's only a couple of months. Don't forget to buy your Xmas cards at CF in the meantime :) |
Wait till January? Might get them for 70p then ! |
Greetings retail giant Cardfactory is making good on promises in its latest results and forging ahead with the continuing store opening programme as eight have been added to the portfolio over the past six weeks or so.
Pushing it past the 1,060-store mark, Cardfactory can now be found in Aylesford, Bolton, Leeds, Lincoln, Manchester, Paisley and Prestwick as well as expanding in Ireland with the latest shop in Killarney. |
Bought a card on Sunday in the Kidderminster store 15p. How do they pay their overhead? |
Additional Aldi & Matalan sales could help H2, among other factors such as the US and seasonal sales. We may need to wait until early January for the next significant news however (seasonal update)? |
Still lots of scepticism around CF after the horrendous drop in share price Think most are keeping their powder dry before they commit again and need to hear from the horses mouth what their plan is going forward. Even then many will sell into any rise to mitigate their recent considerable paper losses. And if no news materialise then this will simply drift even lower. |
Yes ADF.PLC |
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