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To hng 33

Thanks for all your examples given to each of the capital allocation strategies. You are the one person that truly understands the intrinsic value of YTLP. Good on ya! Not many people understand the full impact of the capital deployment and allocation strategies adopted by YTLP. The financial community has not been able to quantify the intrinsic value of 1Bestarinet & YES, and appreciate share buybacks.

Basically, CEOs have 5 choices for deploying capital
1. investing in existing operations
2 acquiring other businesses
3 issuing dividends
4 paying down debt
5 share buybacks
Sometimes the best investment opportunity is buying own shares. In fact, the CEOs need to do 2 things to be successful: run their operations efficiently and deploy cash generated by those operations. Capital allocation is a CEO's most important job. Large share buybacks are still very foreign in Msia and therefore, local research houses have not commented on it. It requires extreme patience but the rewards will come.one day!!

hng33

Very good point. Teledyne and Capital Cities basically cancel shares and reduce no. of shares outstanding. These companies bought between 40-50% of shares outstanding in the 80s. Good for earnings per share. i think share buybacks is a very good allocation strategy. Other capital allocation strategies like investing in existing business, acquisitions, pay back debts and pay dividends. i reckon if share buybacks is done properly, it will reward shareholders.

Share buybacks is a good capital allocation strategy. Long term investors will be rewarded. US companies like Teledyne and Capital Cities which have use share buybacks strategy have rewarded shareholders very well in the past.