Stock buybacks>operating CF

(08-03-2012, 08:06 AM)Temperament Wrote: Thanks, for your point of view. Hope it's correct.
But why are they still buying back their shares, look like its difficult for Management to increase their AUM because of high current dividend yield? (i have read somewhere.) So it may be 1 of the reasons Management keeps buying back company's share. But if that's the reason then dividend yield may be even go higher if after buying Management voids the share. (i am not sure Management void the shares or keep them as Treasury shares). i think i will have more worries if Management keep them as Treasury shares.

(08-03-2012, 05:17 PM)weijian Wrote:

(08-03-2012, 08:06 AM)Temperament Wrote: Thanks, for your point of view. Hope it's correct.
But why are they still buying back their shares, look like its difficult for Management to increase their AUM because of high current dividend yield? (i have read somewhere.) So it may be 1 of the reasons Management keeps buying back company's share. But if that's the reason then dividend yield may be even go higher if after buying Management voids the share. (i am not sure Management void the shares or keep them as Treasury shares). i think i will have more worries if Management keep them as Treasury shares.

Mgt cancels all the shares that it buys back. Just pull FY2011 results and you can see the differences in outstanding shares (2010 vs 2011) - all a result of sharebuyback+cancellation.

In the MIIF's thread discussion, many of the forumers have given their views on the pros/cons and true motivations behind the sharebuyback - which is instrinically puzzling to many. You can take a look there.