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Buyback

Keep a watch on SymphonyThe stock of Symphony has been following a descending triangle pattern. It has a strong demand zone near 800 levels and currently, its looking to give a bullish breakout from the trendline resistance. Next supply zone is around 1200-1220 levels. The company has also announced a buyback at Rs. 2000/ share. Also, the summer heat might help boost the revenue in Q4 2023. These factors can support the breakout. So, do keep this stock in watchlist as it is currently trading above 200 Weekly EMA and RSI breakout is also done. Idea is shared only for educational purposes and please trade according to your research.
NSE:SYMPHONYLong
by chartistamey
TCS Buy-back & how I got it rightTCS BUY BACK & HOW I GOT IT RIGHT BACKGROUND TCS declared its Q3 results last evening and it was expected to announce a share buy-back proposal. This news was available ahead of the results and therefore, I decided to work out what could be the likely buy-back price that it may offer. Based on my observations, TCS has a tendency to cross the buy-back price and then retrace either below or around the buy-back price just when the buy-back approaches. The logic is that the scrip is unlikely to trade above the buy-back price and is more likely to fall for some time. INTENT I have holdings in the scrip so I was eager to test my logic of arriving at the likely buy-back price. In the past. I have traded TCS pre and post-buy-back with the intention to make trading gains so I may enter a trade as & when I find a good risk-reward opportunity. So my intent was to know the likely range that it may offer should I decide to buy TCS. WORKING In my view, a company that opts for buy-back of shares is either trying to compensate the shareholders from the available surplus or it may be willing to consolidate its own position as it expects improved performance in the coming periods. It could also be for both the reasons. In reality, I am not affected by their reason as long as the price offered is at a better premium than the ruling price. This will motivate me to stay put with my holdings and or induce me to initiate a new trade. My work to arrive at the price was done a day ahead of the announcement and for those who may be quick to think that what is the point in writing the article post-facto, I have pasted a link to the video where I have stated the price range that may be used for arriving at the buy-back price. On 11-1-21, TCS closed above 3900 so I kept 3900 as the base and did the following: Case 1 The offer price could be at a premium of 10% to the ruling price. So, 3900*1.10 = 4290 so I rounded-off to 4300. Case 2 The offer price could be at a premium of 15% to the ruling price. So, 3900*1.15 = 4485 so I rounded-off to 4500. The reason for 10% is that it is a good enough incentive to the shareholders to tender the shares and is more than the returns that a debt instrument would give. The reason for 15% is that the company may want to top up the premium with a hidden component of dividend which is otherwise taxable. My conclusion was that TCS may offer the buy-back within this range with 4500 being the cap as I felt anything more would mean that the company may be doing social service than rewarding its shareholders. My reading was that the shares would in any case not cross 4000 immediately as TCS has the tendency to go sideways to negative post results and as the time elapses from the result release, it goes down if the sentiment is not positive. CONCLUSION Since I have some holdings in TCS, I am happy that a part of that would be tendered at the final price that the company may announce . I now have a range of 600 points from 3900 to 4500 which is available for me to decide about trading the scrip subject to the right set-up and more importantly funds availability. I am now encouraged to test the approach for such announcements that the other companies may make. Here is the link to the video: youtu.be I would be happy to read your feedback. Thank you, Umesh 13-1-22 Not SEBI Regd. Shared for the purposes of Educational & Informational purposes only.
NSE:TCS
by AVENUESOFINVESTMENT
Huge Gains Supported by company buyback @ 1000 and price below DISCLAIMER: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. Kindly consult your licensed financial advisor before making any and all investment decisions. I am not a SEBI registered financial advisor. By Viewing any material or using the information provided by me, you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here.
NSE:AARTIDRUGSLong
by varunjparswani
TCS : Too risky to touch during Result times !Yep ! TCS results are coming out in 4 hrs I guess. Yesterday itself TCS board has approved for share buyback, if I'm not wrong its around Rs.2800 I believe. So, a share buyback will always increase EPS of a company, here also it can happen. But Results are coming out so there may be wildswings on any direction bcos we can never predict how Market views results. Anyway with help of trendlines we have formed zone around 2250's to 2300's ( a wick or good support with trendline can happen in singleday or comingdays ) I can't specify time. Trump getting ready to sign H1B visa reforms, well buybacks can provide support for a stock at times. I hope that trendline wouldn't be broken on daily basis if that happens it may go down to 2100's ( pretty bad scenario). Conservative traders can enter after the upside trendline confirmation. Things wont happen in next few mins, this one on TCS will take days or weeks !
NSE:TCS
by InsiderB
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