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Online Share Trading

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CHROMETCO

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Maggie
Super Contributor
I see a special resolution has been passed to allow the Directors to repurchase the Company's shares. What does this mean for shareholders, ie price etc?
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4 REPLIES 4
striker
Super Contributor
Maggie - nothing unusual about this practise - many coy's will buy their shares back when they are flush with surplus funds.Generally it helps the share price by reducing the no. of shares in issue, and enhancing P/e & D/y factors.
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SimonPB
Valued Contributor
problem is that often they buy as the price is falling and end up paying top dollar for the shares. JDG paid around 3900c on average, share is now 3000c. So share holder value lost in the short term.
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louisg
Super Contributor
Short term should not matter. Shareholders should benefit in the long term.
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macG
Contributor
could it not be interpereted that as the directors feel that the share price is largly undervalued and/ or they have excess cash
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