Samsung makes investors happy with $1bn share buyback Samsung has announced a plan to buy back $2bn worth of its shares, after investors pressured the firm for higher returns. The Korean chaebol will buy back 1.65 million common shares and 250,000 preferred shares in its first buyback since 2007, and the second-largest ever. Sammy said in a regulatory filing the stock …
Nah, it shows that they are desperate to keep the share price higher than their trading figures alone would warrant.
They don't have the billions and billions of won in the bank like Apple.
Yes there is a school of thought that by doing this they can be seens to be doing something but frankly apart from the Semi-conductor division where the margins are rather thin, the rest of the company is a bit of a basket case. The flasgship S5 has just about tanked when comparing actual sales against projected sales.
Apple on the otherhand were literally forced to intitate a share buy-back to satisfy one major investor. While they could afford it, it appears that they'd rather have the cask in the bank.
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