AnalysisInvesting

What do you do when the Great Global Sale Happens?

We believe by now, you are aware that the Great Global Sale is going on. Billions have been wiped out within seconds globally. As Warren Buffett always says, be greedy when others are fearful.

Here is one example of a company being greedy when others are fearful.

Capture11 - What do you do when the Great Global Sale Happens?
Share Buyback Announcements
Company's Stock Price. Image: Yahoo Finance
Company’s Stock Price.
Image: Yahoo Finance

I even did quick tabulations of the transaction dates, costs and volume of buybacks. Noticed that there were a total of 4 million share buyback initiated over 5 – 11 March 15!

Informations of share buyback Image Credits: BSI
Informations of share buyback
Image Credits: BSI

Although share buybacks are never ever an indication for you to buy the stock, it instills certain confidence when the company deploys its own cash to fund share repurchases.

Of course, one could argue that the company could be destroying value by employing shareholder’s cash to support the stock price. It is an independent and individual judgement of how you view the issue. Unless you work in the company and have access to management’s decisions, your guess is always as good as ours.

To know what company this is, do subscribe to our newsletter as we will be revealing it in a later article. We’ll also share the pros and cons of a share buyback and how you could incorporate this into your investing strategies.

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