Archived posting to the Leica Users Group, 2011/09/29
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Robert, A little higher price for the share in the secondary market still does nothing to solve the company's cash flow problems. That is only solved by issuing new shares in the primary market. If the new shares are issued by means of a 'Rights Issue" - where existing shareholders are given a right to buy new shares in proportion to their existing holdings - the price is again irrelevant because all existing shareholders will continue holding the same percentage of equity shares as before in the company, and therefore their degree of ownership in the company does not change. When a company buys back shares it is reducing the supply of shares outstanding by using cash it has on the balance sheet. The logic is that with lesser number of shares outstanding, and the valuation of the company static, each outstanding share would be worth more - in other words the remaining shares would be increasing their percentage holding (and therefore ownership) in the company. IMHO, just distributing cash back to the shareholders by means of a dividend is usually a much better economic solution to excess cash than share buybacks (which are good for CEO ego and little else). Cheers Jayanand On Fri, Sep 30, 2011 at 7:18 AM, Robert Meier <robertmeier at usjet.net> wrote: > But that raises the price of the shares, just as when a company buys back > its own shares from the secondary market. > > > > On Sep 29, 2011, at 8:40 PM, Jayanand Govindaraj wrote: > > Phil, >> You are not keeping them alive - buying shares in the secondary market is >> akin to buying second hand Leica equipment - nothing flows into the >> company's coffers. This is a pure sefish profit play! >> Cheers >> Jayanand >> >> On Fri, Sep 30, 2011 at 7:06 AM, Phil Forrest >> <photo.forrest at earthlink.net>**wrote: >> >> I was thinking the same thing. Even a few hundred shares wouldn't be >>> a big loss at this point but if they regained shareholder confidence a >>> little bit of profit could be made. Or maybe just the good feeling of >>> possibly helping keep them alive. >>> >>> I'd like to hear what Leica is thinking regarding this matter. >>> >>> Phil Forrest >>> >>> >>> >>> On Fri, 30 Sep 2011 06:59:39 +0530 >>> Jayanand Govindaraj <jayanand at gmail.com> wrote: >>> >>> Maybe it is worth a little flutter at $1.69....hardly any downside, >>>> maybe a much bigger upside depending on what happens. >>>> Cheers >>>> Jayanand >>>> >>>> On Fri, Sep 30, 2011 at 3:15 AM, Ken Carney <kcarney1 at cox.net> wrote: >>>> >>>> $1.69, from $30 ~four years or so ago. Sounds like something I >>>>> would own :( >>>>> >>>>> Ken >>>>> >>>>> On 9/28/2011 8:56 PM, George Lottermoser wrote: >>>>> >>>>> >>>>> <http://247wallst.com/2011/09/****24/kodak-its-credibility-**gone-**<http://247wallst.com/2011/09/**24/kodak-its-credibility-gone-**> >>>>>> now-had-viability-trouble/< >>>>>> >>>>> http://247wallst.com/2011/09/**24/kodak-its-credibility-gone-** >>> now-had-viability-trouble/<http://247wallst.com/2011/09/24/kodak-its-credibility-gone-now-had-viability-trouble/> >>> >>>> >>>> >>>>>>> >>>>>> Regards, >>>>>> George Lottermoser >>>>>> george at imagist.com >>>>>> http://www.imagist.com >>>>>> http://www.imagist.com/blog >>>>>> http://www.linkedin.com/in/****imagist<http://www.linkedin.com/in/**imagist> >>>>>> <http://www.linkedin.com/in/**imagist<http://www.linkedin.com/in/imagist> >>>>>> > >>>>>> >>>>>> >>>>>> >>>>>> >>>>>> >>>>>> >>>>>> >>>>>> ______________________________****_________________ >>>>>> Leica Users Group. >>>>>> See >>>>>> http://leica-users.org/****mailman/listinfo/lug<http://leica-users.org/**mailman/listinfo/lug> >>>>>> < >>>>>> >>>>> http://leica-users.org/**mailman/listinfo/lug<http://leica-users.org/mailman/listinfo/lug> >>> >for >>> >>>> more information >>>>>> >>>>>> >>>>>> >>>>> ______________________________****_________________ >>>>> Leica Users Group. >>>>> See >>>>> http://leica-users.org/****mailman/listinfo/lug<http://leica-users.org/**mailman/listinfo/lug> >>>>> < >>>>> >>>> http://leica-users.org/**mailman/listinfo/lug<http://leica-users.org/mailman/listinfo/lug> >>> >for >>> >>>> more information >>>>> >>>>> >>>> ______________________________**_________________ >>>> Leica Users Group. >>>> See >>>> http://leica-users.org/**mailman/listinfo/lug<http://leica-users.org/mailman/listinfo/lug>for >>>> more information >>>> >>> >>> >>> ______________________________**_________________ >>> Leica Users Group. >>> See >>> http://leica-users.org/**mailman/listinfo/lug<http://leica-users.org/mailman/listinfo/lug>for >>> more information >>> >>> >> ______________________________**_________________ >> Leica Users Group. >> See >> http://leica-users.org/**mailman/listinfo/lug<http://leica-users.org/mailman/listinfo/lug>for >> more information >> > > > ______________________________**_________________ > Leica Users Group. > See > http://leica-users.org/**mailman/listinfo/lug<http://leica-users.org/mailman/listinfo/lug>for > more information >