This is evidenced by the Shiva termination, and the Board's recent statement that they ``... seek to accelerate the process of
returning value to shareholders through a review of the investment and realisation strategy and over the next twelve months steps will be taken to try and achieve this aim».
An initial catalyst attracted my attention in September — in their Final Results they stated: `... The Board has decided to seek to accelerate the process of
returning value to shareholders through a review of the investment and realisation strategy and over the next twelve months steps will be taken to try and achieve this aim `.
Not exact matches
Add in that Amazon is diluting
shareholders by one percent in the last twelve months, versus Macy's which is
returning capital
through dividends and share repurchases at a rate of twelve percent, and you get a complete picture of why Macy's looks attractive
to a
value investor.
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.
This is because Warren believes he can generate higher
returns (in intrinsic
value and in turn eventual share price)
through investing in the purchase of new businesses, rather than the
returns to shareholders through payment of a dividend.
The strong growth and cash flow from Humira, the continued development of their drug pipeline, and management's commitment
to returning capital
to shareholders through dividends has increased our estimate of fair
value for the company and changed our holding period from one year
to multiple years.
You can still run your business and still bring
value to the
shareholders through the AV411 program while
returning capital
to your investors.
The killer combination is growing revenues, rising book
value, combined ratios under 100 %, and management that is committed
to returning shareholder wealth
through buybacks and dividends.
If
shareholders are
to make most of their money
through earnings growth and / or positive sentiment, then further excess
return needs
to be demanded
to compensate for potential of negative sentiment destroying market
value faster than earnings growth can grow against.