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murchr
#1 Posted : Sunday, March 22, 2015 6:31:38 PM
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Joined: 2/26/2012
Posts: 15,980
Was the companies act law ever changed to allow share buy backs? If not what was the reason given
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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jerry
#2 Posted : Sunday, March 22, 2015 7:19:33 PM
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Joined: 9/29/2006
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murchr wrote:
Was the companies act law ever changed to allow share buy backs? If not what was the reason given

Is this fear or hope?
The opposite of courage is not cowardice, it's conformity.
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VituVingiSana
#3 Posted : Sunday, March 22, 2015 7:45:02 PM
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Joined: 1/3/2007
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Location: Nairobi
murchr wrote:
Was the companies act law ever changed to allow share buy backs? If not what was the reason given

Aren't we still on the 1948 Companies Act?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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murchr
#4 Posted : Sunday, March 22, 2015 7:48:32 PM
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Joined: 2/26/2012
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VituVingiSana wrote:
murchr wrote:
Was the companies act law ever changed to allow share buy backs? If not what was the reason given


Aren't we still on the 1948 Companies Act?


What????
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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murchr
#5 Posted : Thursday, April 23, 2015 3:17:27 AM
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Joined: 2/26/2012
Posts: 15,980
Business Daily wrote:
An amendment to Kenya’s Companies Act, which has already gone through the first reading in the National Assembly, seeks to allow quoted companies with excess cash to reduce the number of shares available for trading, thereby supporting the share price when they feel the market does not reflect the true worth of the stocks.


If the market tanks, the green monster may be tempted. I dont know what the author means when he says that share buy backs cause the 2008 meltdown. I thought companies were buying their shares to protect their value.?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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whiteowl
#6 Posted : Thursday, April 23, 2015 8:32:53 AM
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Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
murchr wrote:
Business Daily wrote:
An amendment to Kenya’s Companies Act, which has already gone through the first reading in the National Assembly, seeks to allow quoted companies with excess cash to reduce the number of shares available for trading, thereby supporting the share price when they feel the market does not reflect the true worth of the stocks.


If the market tanks, the green monster may be tempted. I dont know what the author means when he says that share buy backs cause the 2008 meltdown. I thought companies were buying their shares to protect their value.?

Actually it's quite the opposite. Company execs used to bet against their own stock, crash it and make big bucks in the process.
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murchr
#7 Posted : Thursday, April 23, 2015 2:06:06 PM
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Joined: 2/26/2012
Posts: 15,980
whiteowl wrote:
murchr wrote:
Business Daily wrote:
An amendment to Kenya’s Companies Act, which has already gone through the first reading in the National Assembly, seeks to allow quoted companies with excess cash to reduce the number of shares available for trading, thereby supporting the share price when they feel the market does not reflect the true worth of the stocks.


If the market tanks, the green monster may be tempted. I dont know what the author means when he says that share buy backs cause the 2008 meltdown. I thought companies were buying their shares to protect their value.?

Actually it's quite the opposite. Company execs used to bet against their own stock, crash it and make big bucks in the process.


Give an example
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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whiteowl
#8 Posted : Thursday, April 23, 2015 7:42:38 PM
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Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
murchr wrote:
whiteowl wrote:
murchr wrote:
Business Daily wrote:
An amendment to Kenya’s Companies Act, which has already gone through the first reading in the National Assembly, seeks to allow quoted companies with excess cash to reduce the number of shares available for trading, thereby supporting the share price when they feel the market does not reflect the true worth of the stocks.


If the market tanks, the green monster may be tempted. I dont know what the author means when he says that share buy backs cause the 2008 meltdown. I thought companies were buying their shares to protect their value.?

Actually it's quite the opposite. Company execs used to bet against their own stock, crash it and make big bucks in the process.


Give an example

There were these kind of stories that emerged after 2008 crisis. They showed share buy backs and other forms of "financial engineering/innovation" were all a game of musical chairs. I also don't remember anyone being prosecuted. There was a joke on Boondoks that if you lose $10 billion in China you're shot,if you lose the same in the US you're given another 10 + a promotion.
There is also this article on the good and bad of share buy backs
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murchr
#9 Posted : Thursday, April 23, 2015 8:22:24 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
whiteowl wrote:
murchr wrote:
whiteowl wrote:
murchr wrote:
Business Daily wrote:
An amendment to Kenya’s Companies Act, which has already gone through the first reading in the National Assembly, seeks to allow quoted companies with excess cash to reduce the number of shares available for trading, thereby supporting the share price when they feel the market does not reflect the true worth of the stocks.


If the market tanks, the green monster may be tempted. I dont know what the author means when he says that share buy backs cause the 2008 meltdown. I thought companies were buying their shares to protect their value.?

Actually it's quite the opposite. Company execs used to bet against their own stock, crash it and make big bucks in the process.


Give an example

There were these kind of stories that emerged after 2008 crisis. They showed share buy backs and other forms of "financial engineering/innovation" were all a game of musical chairs. I also don't remember anyone being prosecuted. There was a joke on Boondoks that if you lose $10 billion in China you're shot,if you lose the same in the US you're given another 10 + a promotion.
There is also this article on the good and bad of share buy backs


I dont see how GS used "SHARE BUY BACKS" to cause the market crash. May be you need to explain this like you 'd do it to a 2yr old.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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