Yu Share Discussion Threads

[disc0dave46] 18/7/2024 10:37

C'mon Walter Mitty pull your finger out, get your fantasy crew if yours to get this up to a new 52w high by EOP Monday.And folks believe, jeez.

[disc0dave46] 18/7/2024 10:36

SparkyA clue - There's a well known UK clothing retailer CEO who is regarded as the expert on share buybacks, how to implement them effectively, the rules in effect. But most other companies simply apply them haphazardly and they aren't actually cost effective, but the yanks like them and now the UK market has followed suit. Some UK companies even do buybacks despite having net debt on the books.

[disc0dave46] 18/7/2024 10:30

SparkyFFS I told you what it stands for. But how do you determine it?

[disc0dave46] 18/7/2024 10:29

"Estimate rate of return guessing"Nope

[disc0dave46] 18/7/2024 10:29

SparkyWell for once DYOR.You are suggesting a buyback because others have mentioned it, you've even suggested a quantity / value - but you don't really know what the impact will be or whether or not the business is using their cash wisely.

[sparky333] 18/7/2024 10:23

Estimate rate of return guessing

[sparky333] 18/7/2024 10:23

No idea what ERR is

[disc0dave46] 18/7/2024 10:20

SparkySo you post up that you think they should do a buyback, then googled what's the benefits of a buyback.Unbelievable

[disc0dave46] 18/7/2024 10:19

SparkyWhat ERR would you think is acceptable?Still waiting for bear points.

[disc0dave46] 18/7/2024 10:18

Sparky"company repurchases its shares when it wants to consolidate ownership, preserve stock prices, return stock prices to real value, boost financial ratios, or reduce the cost of capital."Well done Mr Google. Jeez Sparky you really are something else.So Rawson had better ensure that the equivalent rate of return (ERR) by the buyback is is better than simply sticking the cash in a bond.A buyback is welcomed positively by the market and it will increase eps, it doesn't IMO rerate the business, the PE stays the same but as the eps increases this it follows the share price shoukd increase, but it's not always the case. A 1.4% increase in eps as you suggested isn't likely to move the dial IMO.What

[sparky333] 18/7/2024 10:12

Exactly no one knows but a nice position to be with so much cash not like most companies with constant begging bowls out

[sparky333] 18/7/2024 10:08

They may not do it , but it's a nice position to be in Must be hard for the BOD as so many options not like the majority of the stocks about with begging bowls out continually

[sparky333] 18/7/2024 10:06

A company repurchases its shares when it wants to consolidate ownership, preserve stock prices, return stock prices to real value, boost financial ratios, or reduce the cost of capital.

[sparky333] 18/7/2024 10:05

It's more than just that and you know it.

[daveboy19] 18/7/2024 10:05

I think he said 2-4 million actually but it's anyone's guess.

[daveboy19] 18/7/2024 10:04

Yep and they do have a serious cash pile to do it easily with no acquisitions desired and growth initiated already?

[disc0dave46] 18/7/2024 09:55

Sparky"4-5m for buyback ? So about 200,000-250,000 shares ? "So 250k shares would improve earnings by only 1.4%, plus making liquidity worse if they cancel the shares they buy.Would the market buy that?

[disc0dave46] 18/7/2024 09:51

SparkyHow about their costs?, like how much are Shell charging?....nobody seems to know. It was mentioned they need to keep one months working capital on the balance sheet....so they need working capital to operate the business, is that one months cash in the BS plus the cash they need for working capital?. On their finals working capital was £32m, so is it £60m they need to keep as cash on the BS?.Plus their working capital to revenue ratio is 14x, so as revenue increases so will their working capital requirement by that ratio.How about their ROC payment next month, IMO circa £28m, again that will increase proportionally with income.Then there's the big elephant in the room, how well are Shell performing and what's the hit to margins when energy normalises / keeps falling?.

[sparky333] 18/7/2024 09:49

4-5m for buyback ? So about 200,000-250,000 shares ? That's a lot when the average volume guessing about 30-40k Would certainly put the cat amongst the pigeons with 5 and 10k buy backs dropping in every few days

[daveboy19] 18/7/2024 09:47

I still think they will do both as suggested in the '23 AR.
SNN probably has it about right when he said 20p/£4-5M(for starters). Leaves plenty in the tank for progressive dividend and future buy backs. Or higher both?

[sparky333] 18/7/2024 09:44

Fingers crossed daveboy I would love a buy back rather than a special dividend. They need to do something with all that cash.

[daveboy19] 18/7/2024 09:42

Initiate the buy back and they can just snap up the free float a bit cheaper if traders sell off again.