Tag: trading recommendation

Buyback- An Inside Story

A buyback is a transaction in which a company buys back its own shares. It is capitalization of its own surplus cash. hence it can also be viewed as an alternative to cash dividends. Shares that have been issued and subsequently buyback are classified as treasury shares. They are not then considered for dividends, voting rights or computing earnings per share(EPS). Some of the basic reasons for share buyback or repurchase are: 1. Management perceived shares in the company to be undervalued in the market place or more generally to support the share price. Company intrinsic value is more than market price. 2. There is no better opportunity to deploy cash, which can generate better returns than cost of capital. 3. Tax efficiency in distributing cash, in market in which the tax rate on cash dividends exceeds the tax rate on capital gains. 4. To absorb increase in share outstanding resulting from the exercise of employee stock options. 5. Capitalization of reserve and surplus to improve ROE. <strong><u>Various share buyback method used by the companies are:</u></strong> 1. Buy in the open market <br /><a class="btn btn-tislider-two" href="http://www.ifminvest.in/buyback-an-inside-story/">Read More</a>

Weekly Market Pulse – 7 April 2014

Weekly Market Pulse                                                                                                      April 7, 2014   Sensex closed at 22359, a rise of 20 points as compared to a rise of 584 points in the previous week. Sensex made a new all time high of 22620 Sensex is in strong uptrend and continue to be remaining in uptrend with higher volatility. Most of the […]

Weekly Market Pulse Feb 17, 2014

Sensex closed at 20366, a fall of 10 points as compared to a fall of 137 points in the previous week. In the weekly chart below, we see that the Indian markets are trending downward, the western markets are trending the same. So Markets are jittery before the significant event i.e. Elections & US tapering […]