If the company doesn't have reasonable surplus of cash to repurchase the stock or If their main reason is to manipulate the market price and attract institutional investors, then I don't support it all.
But other than that, I rather have them allocate the capital wisely by buying back shares that are selling way below its intrinsic value than distributing them because the shareholders demands it. If there are no other options, then paying cash-dividend is the way to go.
Even though many people don't understand it, if it is the rational way to allocate the capital, and if it would benefit the shareholders in long run, then so be it.
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