PokaiTrader
:
Is a basic supply vs demand calculus. Share buy-backs reduce the number of shares out in the market, allowing a squeeze in the supply side. Theoretically, prices move up in scenario where there's less available. Not always the case, a lot of other factors. Also some negative views, like company is cash rich and out of strategizes to make money on that cash. Worse, when interest rates were near zero, managements tookon debt with purpose to buy-back shares. Apple management in this case had two negatives on earnings report, the ones on iPAD and wearable numbers, probably decided to sweeten the business update with buy-back announcement to make shorties rethink...} Buyback: What It Means and Why Companies Do It
Phil Philosoraptor : The company is basically making a commitment to buy $110B in stock and if I’m not mistaken it reduces the float
104768207 OP Phil Philosoraptor : so would u suggest to sell or hold
PokaiTrader : Is a basic supply vs demand calculus. Share buy-backs reduce the number of shares out in the market, allowing a squeeze in the supply side. Theoretically, prices move up in scenario where there's less available. Not always the case, a lot of other factors. Also some negative views, like company is cash rich and out of strategizes to make money on that cash. Worse, when interest rates were near zero, managements tookon debt with purpose to buy-back shares. Apple management in this case had two negatives on earnings report, the ones on iPAD and wearable numbers, probably decided to sweeten the business update with buy-back announcement to make shorties rethink...} Buyback: What It Means and Why Companies Do It
PokaiTrader : To note the buyback is just an announcement, not actually executed "YET"; maybe rescinded due to changing market conditions....
104768207 OP PokaiTrader : thanks for the explanation sifu