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Kubisiak5

04/11/14 10:12 PM

#113940 RE: pagosasprings #113932

Well the company can just buy shares and keep them as an investment stake in their own company which they profit from, or he can buyback and then retire the shares, decreasing the amount of shares out there thus boosting the price and giving everyone a larger percentage of ownership. The first one improves the companys bottom line and other numbers because it generates extra income by having that extra investment in their portfolio. But the buyback/retire immediately affects PPS more directly while giving both us and ED a bigger cut of whatever profits are made.

Its really a win/win, but id clearly prefer the buyback and retire. It shrinks the float permanently as far as that particular initiative is concerned, and gives the common shareholder the larger percentage stake as I said before.