Creating value

Last Updated: Tue, Aug 14, 2012 03:32 hrs

Share buybacks, which are gaining popularity, have a positive impact on stock prices over a 12-month period. An analysis done by Morgan Stanley shows that since 2005, about half of the stocks have outperformed the Sensex over 12 months after the start of the buyback. The foreign brokerage says buyback coupled with positive change in fundamentals is the recipe for excess returns. Following table shows performance of a stock post commencement of buyback(Click on graphic)


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