Shares & Derivatives
Sarine Technologies Ltd – Shares Buy Back vs Grant of Employee Share Options
By A Pen Quotes  •  April 21, 2015
I have previously written a post about the clock work precision of Sarine Technologies Ltd’s share buy back. (read here)
“When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.” Warren Buffett 1984 Letter to Shareholders
If we just consider the share repurchase by the company while ignoring the fluctuations of profits, tax, cash flow, expenses, etc, and assuming earnings remain the same over the years, technically Earning per Share (EPS) will increase, as the no. of shares has decreased. On the other hand, Grant of Employee Share Options & Issuance of Bonus shares increases the no. of shares and technically will dilute the EPS. Of course, profits, earnings, expenses will always vary through the years… Warren Buffett advocates the repurchase of shares as this adds value to the ......
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By A Pen Quotes
Hi, I am a typical guy born in 1976. You can call me ‘T’. Family: I have a lovely wife and 2 kids (a boy and a girl). To me, they are the best things that happened in my life. Work: I’m working full-time in the construction industry. Interests: I like to swim, draw and read up on financial articles. I have started a Youtube channel on sketches. Do check it out here.
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