TCS: Co. Approved Rs 18,000 Cr buyback at Rs 4,500 per share today
👉Let us know a brief on buyback.
👉 What is buyback , how will it benificial for shareholders and company itself.
Read the whole thread 🧵, if you like it plz share
Source BSE / Chittorgarh .com
1. Undervalued stock
When the management feels that their stock is undervalued, they adopt the buyback to rectify the stock price. Stock buyback reduces the number of shares in the market and thus gives a price boost to the remaining shares in the market.
The dividends get taxed at two levels. First, at the company level and a second time in the hands of the shareholders. However, in the case of a buyback, only the company is liable to pay a buyback tax.
The company promoters can increase its stake in the company by forfeiting the buyback offer. This strengthens their hold over the company and acts as a defense strategy in the case of hostile takeovers.
The capital structure of a company gets represented by its debt-equity ratio. Each industry has a different capital structure requirement.
1. Buybacks boost the share prices rectifying the prices of undervalued stocks.
2. Buybacks improve the company's Key Financial Ratios like EPS , ROE , Return on Asset.
3. Buyback provides an easy exit route for shareholders for undervalued stocks.
5. Buyback serves as a health check on the company's financial position as only the companies with good liquidity position are allowed to announce buyback offers.
1. The improvement in the financial ratios of the company may not be real. The increase may be due to a reduction in the denominator on account of a decrease in the number of equity shares and assets. However, that may not be a real profit.
1. Through tender offer
2. Through Open Market
3. Buyback of shares from Odd-lot holder
(This method of the buyback is less common in India)
1. To be eligible to participate in the Tender offer buyback, a person needs to be an existing shareholder as on the Record Date of the buyback offer.
In the Tender offer, the shares can either be in physical form or Demat form.
in an open offer, generally only the Demat shareholders can be a part of the buyback offer.
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THE WINNERS OF THE 24 HOUR STARTUP CHALLENGE
Remember, this money is just fun. If you launched a product (or even attempted a launch) - you did something worth MUCH more than $1,000.
#24hrstartup
The winners 👇
#10
Lattes For Change - Skip a latte and save a life.
https://t.co/M75RAirZzs
@frantzfries built a platform where you can see how skipping your morning latte could do for the world.
A great product for a great cause.
Congrats Chris on winning $250!
#9
Instaland - Create amazing landing pages for your followers.
https://t.co/5KkveJTAsy
A team project! @bpmct and @BaileyPumfleet built a tool for social media influencers to create simple "swipe up" landing pages for followers.
Really impressive for 24 hours. Congrats!
#8
SayHenlo - Chat without distractions
https://t.co/og0B7gmkW6
Built by @DaltonEdwards, it's a platform for combatting conversation overload. This product was also coded exclusively from an iPad 😲
Dalton is a beast. I'm so excited he placed in the top 10.
#7
CoderStory - Learn to code from developers across the globe!
https://t.co/86Ay6nF4AY
Built by @jesswallaceuk, the project is focused on highlighting the experience of developers and people learning to code.
I wish this existed when I learned to code! Congrats on $250!!
1/ Some initial thoughts on personal moats:
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
I'm increasingly interested in the idea of "personal moats" in the context of careers.
— Erik Torenberg (@eriktorenberg) November 22, 2018
Moats should be:
- Hard to learn and hard to do (but perhaps easier for you)
- Skills that are rare and valuable
- Legible
- Compounding over time
- Unique to your own talents & interests https://t.co/bB3k1YcH5b
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
People talk about \u201cpassive income\u201d a lot but not about \u201cpassive social capital\u201d or \u201cpassive networking\u201d or \u201cpassive knowledge gaining\u201d but that\u2019s what you can architect if you have a thing and it grows over time without intensive constant effort to sustain it
— Andrew Chen (@andrewchen) November 22, 2018
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
Things that look like moats but likely aren\u2019t or may fade:
— Erik Torenberg (@eriktorenberg) November 22, 2018
- Proprietary networks
- Being something other than one of the best at any tournament style-game
- Many "awards"
- Twitter followers or general reach without "respect"
- Anything that depends on information asymmetry https://t.co/abjxesVIh9
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
