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Messages - Mephistopheles

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Shares / Re: Is the Jse Bull Market over?
« on: June 19, 2015, 11:23:59 am »
This all depends on your point of view.  If there is absolute agreement to the following 3 questions you will have your answer.

1. Is there an agreed period of time that is defined or accepted to determine the Bull market? 

2. Is it possible to have a Bull month within a bear year?

3. At what point does a market correction become a bear market?

Regards
Mephistopheles

2
Shares / Re: Share Buyback
« on: March 17, 2015, 12:29:00 pm »
Just a word of caution...

Share buy backs are not all good news.  WB famously asked why should he pay more for a dollar than a dollar.

On the face of it SBB offer an alternative to Directors to reward shareholders.  However, a key question is at what price, and would the money not be better spent elsewhere.  It would be stupid to engage in SBB if the company is trading at a high PE.  Dividends have a tax rate of 15% in SA, and one woudl have to do teh math and see if the perpetual/sustainable benefit of this outways the company SBB at a PE that may not be sensible.

Cheers

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