Covestro has announced that it will
return cash to shareholders if it can't find a suitable takeover target within two years.
Not exact matches
Today, Apple got credit for its bountiful buyback plans, but there are tons of other companies
returning huge slugs of
cash to their
shareholders and I think you'll miss out
if you ignore them,» the «Mad Money» host concluded.
If you want companies
to return less money
to shareholders, then you should be able
to defend an alternative choice for what they should do instead with their
cash.
If shareholders start demanding that more drillers use their
cash to grow
returns instead of production, it could be just the thing the industry needs
to prevent drilling itself into another hole by causing OPEC
to fight back again.
In the long run companies must create enough
cash flow
to pay expenses, invest in the future (capital expenditures), service their debt (
if any), and
return money
to shareholders.
If these companies have capital
to allocate, and can't reinvest it attractively in the business, make sensible acquisitions with it or pay down debt, they have
to either keep it around as
cash equivalents or
return it
to shareholders.
If used correctly, there are a tax - efficient way
to return cash to shareholders: a virtual dividend without the double taxation aspects that go along with a
cash dividend.
Tax policy can also influence how companies choose
to return cash to shareholders —
if dividends are taxed at a higher rate than capital gains, this creates incentives
to return cash via buybacks and debt reduction.
A good Score (i.e., value of 1) is assigned
if the current ratio exceeds two, or net current assets exceed long - term debt, or 10 - year history of positive earnings, or 10 - year history of
returning cash to shareholders or EPS are at least a third higher than they were 10 years ago.
If you think that this cash will most likely be returned to shareholders you have a great deal, if you think the company will find a new way to light money on fire it's not attractiv
If you think that this
cash will most likely be
returned to shareholders you have a great deal,
if you think the company will find a new way to light money on fire it's not attractiv
if you think the company will find a new way
to light money on fire it's not attractive.
Is that a good value for
shareholders, maybe not
if a company burns through all it's
cash only
to have the share price
return to normalcy.
Once (or should I say
if) this pension / labour dispute is put
to rest, I'd actually expect a rapid & substantial improvement in
shareholder value — this might be a substantial
return of capital or a tender offer (
to distribute surplus
cash), and / or a potential new partnership or even a takeover offer..?!
Furthermore, Rose says, the company is «reasonably» priced at a multiple of 16
to 17 times earnings
if you assume that all the
cash is being
returned to shareholders.
If these companies have capital
to allocate, and can't reinvest it attractively in the business, make sensible acquisitions with it or pay down debt, they have
to either keep it around as
cash equivalents or
return it
to shareholders.
As it stands, KGP /
shareholders effectively earn nothing from this
cash — but
if this
cash, for example, were
returned tomorrow morning
to shareholders, there's no reason
to believe that would negatively affect Kingspan's P / S multiple (or its financial strength), and
shareholders would have an additional 212 M
cash to re-invest (or invest elsewhere).
If a company's financially strong, gross
cash these days is a non-productive asset that could be
returned to shareholders, or used for an earnings - enhancing acquisition.
All these look good for Kingspan, so
if they utilised their «surplus»
cash on an acquisition (for example), I see no risk / impairment
to the business (& no impact on their usual working capital cycle)-- and obviously the
return for
shareholders should be far superior
to an effective zero rate on idle
cash!
If a company has too much spare
cash, it may consider investing the surplus funds in new ventures and in case company is out of investment options it may be prudent
to return the excess funds
to shareholders in the form of increased dividend payments.
[And
if cash were
returned to shareholders, that potentially equates
to an astonishing 28.5 % RoE!]
If a security is a stream of
cash flows,
returning those flows
to shareholders over time (dividends, buybacks) will drive the stock price and help it trade (up presumably) with intrinsic value.
Forgone capital expenditure can be used
to increase
shareholder cash returns — buybacks
if management believes that the company is undervalued, dividends
if not.