Though these companies were shrewd enough to announce a buyback plan in 2008 and in early 2009 since the markets had been caught in a tail-spin, the
recent bull run has played spoilsport to their game. At that time nobody had expected this kind of quick recovery in the scrips bur as soon as it has happened these companies found themselves in a Catch-22 situation. Since March 2009 the markets have witnessed a strange turnaround that has pulled up the prices of stocks, surpassing the maximum price announced by the company for buyback. Now it's a real challenge for them to complete their buyback exercise as no shareholder wants to part with his shares at the price offered by the company.
This is what has been happening to a large part of the 22 companies whose buyback process is still going on. They have been able to buy back only 15.53 per cent of the value of shares' of what was previously announced. Therefore, given the circumstances and the way the markets have moved over the past few months, it is very essential for investors to undertake some basic research before investing into any company that announces a buyback. ~
recent bull run has played spoilsport to their game. At that time nobody had expected this kind of quick recovery in the scrips bur as soon as it has happened these companies found themselves in a Catch-22 situation. Since March 2009 the markets have witnessed a strange turnaround that has pulled up the prices of stocks, surpassing the maximum price announced by the company for buyback. Now it's a real challenge for them to complete their buyback exercise as no shareholder wants to part with his shares at the price offered by the company.
This is what has been happening to a large part of the 22 companies whose buyback process is still going on. They have been able to buy back only 15.53 per cent of the value of shares' of what was previously announced. Therefore, given the circumstances and the way the markets have moved over the past few months, it is very essential for investors to undertake some basic research before investing into any company that announces a buyback. ~
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