InvestorsHub Logo
Followers 240
Posts 6880
Boards Moderated 0
Alias Born 01/21/2017

Re: dvice post# 154790

Wednesday, 05/06/2020 10:10:57 AM

Wednesday, May 06, 2020 10:10:57 AM

Post# of 186029
A better approach to the excess stock situation is to buy back shares with profit. That implies that they become profitable. An RS is a black eye on a company, regardless of what they say it is for. It virtually always hurts shareholders, because as soon as it happens, many shareholders SELL at the new price, which drives the price down. Buying back shares with profit helps everyone, because with fewer shares in circulation, the price rises.
The key to this is to get out of the borrowed money mode, and instead of paying interest, put the money into funding their own business.