4 ms·
What would you do if you were sitting on an enormous cash pile and one of the most ridiculous undervaluations ever?
by DannoHung 14y ago
What would you do if you were sitting on an enormous cash pile and one of the most ridiculous undervaluations ever?
- eru 14y agoShare buy back programmes are equivalent to dividends in all but tax treatment. Why should the market capitalization / valuation of the company factor into a decision to pay out to shareholders?
- cremnob 14y agoBecause when you repurchase shares beneath its intrinsic value it's accretive to shareholder value.
- eru 14y agoYes, but judging intrinsic value is something for investors to do. I want my companies to concentrate on what they are good at---and random companies are not good at playing the stock market. (See the other current discussion about Cooper Union (https://news.ycombinator.com/item?id=5599385 https://news.ycombinator.com/item?id=5599385).)