Rws Share Discussion Threads

[microscope] 13/6/2024 14:35

I suppose that if the business buy back shares and the price still drops you feel like you're losing out, though that's usually a short term view, and can correct itself with subsequent share price rise, particularly if nav is higher than the price the company was buying at.

BDEV and VTU would be examples of companies who have a history of very successful buybacks, particularly the latter.

(Incidentally fwiw I still think this is a very well run company, the shareprice has more been concerned about inevitably increased competition from AI etc, than about management imho. Could do a lot worse than having current management on your side.)

[jeffian] 13/6/2024 14:18

Exactly. So as a shareholder, you are not getting a "return of cash". That's my point.

[alotto] 13/6/2024 13:47

If I sell today and the company starts a buy back what do I get in my pocket? Nothing.

[jeffian] 13/6/2024 13:21

I'm sorry. I have no idea what you're talking about.

[alotto] 13/6/2024 10:35

For the cash to go to those who sell, the share price has to rise. Those who sold didn't sell at a higher price thanks to the buyback, actually the share price plummeted. The dividend increase perhaps is due to the very fact that shares were repurchased.

[jeffian] 13/6/2024 09:26

When a company decides it has 'surplus' cash to distribute to shareholders it can either pay a special dividend or make a return of capital, either of which put the money equally into the hands of all shareholders. The current fashion of "returning money to shareholders" is to repurchase shares in the market, which gives all the available cash to those who sell and none to those who continue to hold. The argument is that with less shares in issue, the remaining shareholders benefit from increased Earnings Per Share and Net Asset Value which, theoretically, should result in an increased share price. Except it often doesn't. (In)famously, when Whitbread sold Costa Coffee it "returned" £2bn to shareholders - equivalent to around £12.50/share from memory - which could have been paid out via div/cap payment to all but only went to those who sold. The share price then was over £50; the share price today is around £30 (having been much lower). So how have those shareholders who didn't sell have "cash returned to them". They haven't.

[alotto] 13/6/2024 07:35

Does that mean people sold the shares and got cash in exchange? That's pretty normal... Unless shares fall to zero.

[phillis] 13/6/2024 07:11

Exactly what he says

[alotto] 13/6/2024 06:50

Jeff what do you mean by "Cash was returned to those shareholders who sold"?

[jeffian] 12/6/2024 22:20

"Cash returned directly to shareholders."

In what way? Cash was returned to those shareholders who sold (and..errr...are no longer shareholders). And the rest of us? How has anyone who didn't sell benefited other than a notional rise in eps/nav?

[wad collector] 12/6/2024 22:02

Must confess I am surprised how positively the market has taken these results; so may other companies share price have been caned by more positive sounding results this year,
Bottom line is presumably that the positive sounding outlook is being believed.

Shame we bought at 650p!

[indiestu] 12/6/2024 17:42

Today's volume and candle wasn't bullish? That's a textbook example of a reversal. Signing off until December. GLA.

[indiestu] 12/6/2024 17:39

The share buyback was neutral following the disposal. Money well spent. Cash returned directly to shareholders. Basic stuff. Great management. The debt should be unwound by the end of the year. Raising the dividend kept the diamond hands in. Still yielding 7%. That was a very confident move increasing dividends. It's a bit of a no brainer at these prices hence the big volume today and the market eating it up.

[brucie5] 12/6/2024 17:27

Looks interesting, though technically not yet bullish. I hope Roland Head may update again.

[alotto] 12/6/2024 16:10

Well the buyback makes sense if the cost of dividend payment exceeds the interest on debt. I personally prefer to be in a net cash position buy if that floats the boat...

[thaiger] 12/6/2024 15:59

Bend1pm....you obviously have not read the result and the Outlook!

[indiestu] 12/6/2024 15:55

Outlook positive, growing dividends. The market liked it. I've set my limit at 360 for a cheeky 100% from entry by the end of the year. I like the stock. ?

[phillis] 12/6/2024 15:17

Are you sure?

[bend1pa] 12/6/2024 14:08

Not much chance of this getting back to the 250s. They're losing business, and look set to suffer 2 bad years in succession. They tried a share buyback program, and it failed miserably, and actually got themselves into debt to fund it. What was the point of that other than financial stupidity?

I feel they are losing the plot, and the market seems to recognise that.

[lawson27] 12/6/2024 09:41

alotto, if i could predict that information, i would be sailing round the med in a yacht and i'm not, sadly!

[alotto] 12/6/2024 09:30

Ian El-Mokadem, Chief Executive Officer, has acquired 5,000 ordinary shares of 1 pence each in the Company ("Shares") at a price of 176.4 pence

That's cute!

[alotto] 12/6/2024 09:15

Lawson 250p by when?

[lawson27] 12/6/2024 09:05

Should see this one back to 250s for starters imo, GLA

[c3479z] 12/6/2024 06:39

hope this indicates it's finally stabilising after the AI shocks and market readjustments.