Spgal
reacted to
Spgal
liked
Share buyback will reduce the company's total number of shares outstanding and the total amount of cash on the company's balance sheet. In general, share buyback tends to increase the price of the stock not only due to the reduced supply of shares but also the buyback will boost earnings per share and drive down the price-to-earnings ratio, a key benchmark investors use to value a company. If the company has strong cashflow and its shares are undervalued, share buyback can be a good way to reward shareholders. With the US market $Dow Jones Industrial Average (.DJI.US)$, $Nasdaq Composite Index (.IXIC.US)$, $S&P 500 Index (.SPX.US)$ hitting record highs this year, share buyback by global giant companies $Alphabet-A (GOOGL.US)$, $Apple (AAPL.US)$, $Bank of America (BAC.US)$ , $Meta Platforms (FB.US)$, $JPMorgan (JPM.US)$, $McDonald's (MCD.US)$, $Microsoft (MSFT.US)$, $Netflix (NFLX.US)$, often cited as a key support for US stocks could lift investor hopes by driving the market even higher. The main drivers of the share buyback are excess cash on balance sheets and positive sentiment on the back of healthy financial performance. While companies buying back their own shares can support higher stock prices , they run the risk of overvaluing stocks. Investors should proceed carefully if the buyback seems to be motivated by the management's desire to improve its valuation metrics rather than returning value to shareholders. Companies that use buyback to give the impression of rapid growth in earnings per share may not be worth investing in. Among the companies participating in share buyback, I am most bullish on $Apple (AAPL.US)$, one of Warren Buffett's all time favourite stocks. Its strong brand and innovative design expertise has allowed $Apple (AAPL.US)$ to build one of the most loyal customer bases in the world and generate earnings that beat its competitors in the mobile computing market. Not only that , $Apple (AAPL.US)$ has used its dominant position in mobile to build a largely profitable software ecosystem. Even better, $Apple (AAPL.US)$ pays consistently higher dividend and shareholders can anticipate a huge payout growth in the long term.
79
59
Spgal
liked
$UOB (U11.SG)$ SINGAPORE banks have limited onshore China exposure and so will likely avoid direct hits from the Evergrande fallout, said analysts. But investors should watch share price impact, as the bank stocks are vulnerable to a drag from negative sentiment. https://www.businesstimes.com.sg/companies-markets/singapore-bank-shares-may-drag-on-evergrande-fallout-but-analysts-dont-see-direct
4
1
Spgal
liked
I think higher inflation will hurt the stock market as people will have less money to invest. But will there be any stocks benefitted from inflation?
I see today that cotton prices reached 9-YEAR HIGHS!!! I can't even remember what my life was like 9 years ago. Well, higher cotton prices mean that clothes might become more expensive in the future. I feel that inflation is everywhere, from food to clothes.
Higher living costs are bad for us, but I would love to make more money to offset that. Will inflation hurt the market as a whole? If not, what should I buy and why?
Rewards calling! Comment to win rewards!
Moomoo news team likes what I'm posting every day and we hold events together now. You can comment below to win reward points!
I see today that cotton prices reached 9-YEAR HIGHS!!! I can't even remember what my life was like 9 years ago. Well, higher cotton prices mean that clothes might become more expensive in the future. I feel that inflation is everywhere, from food to clothes.
Higher living costs are bad for us, but I would love to make more money to offset that. Will inflation hurt the market as a whole? If not, what should I buy and why?
Rewards calling! Comment to win rewards!
Moomoo news team likes what I'm posting every day and we hold events together now. You can comment below to win reward points!
37
27
Spgal
liked
$Gogo Inc (GOGO.US)$ Lucky week. Last minute pickup at 14.55. 2100 shares. Sell at 17.00.
12
5
Spgal
commented on
$ChemoCentryx (CCXI.US)$ good news also drop....sigh...
1
4