Archived posting to the Leica Users Group, 2011/09/29
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Jayanand, I bow to your much greater knowledge of all this. Thanks, Robert On Sep 29, 2011, at 8:59 PM, Jayanand Govindaraj wrote: > 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 >> > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information