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Originally Posted by orangebird
I wasn't sure if they did or not... But can't really think of another explanation?  |
There can be many reasons why a company buys back its own shares. NTLI being an American company can buy back its own shares which are then described as corporate treasury stock and not cancelled as they are in the UK. These shares can then be resold in the market at a futures date to raise capital without having to resort to rights issues. The NTLI share price is currently on the up and any buying of shares should accelerate that movement. If NTLI buy back say $500million of shares and the share price rises by 10% over a time then they can resell those shares for $550 million thus having more to invest than originally. Companies only buy back when they are expecting a share price hike.