So buyback @350 means company is going to buy the shares from market at this price.
Today Price around 200 before market opening.
If I would think lame today morning…i would think lets buy the shares @200 and then anyways after few days company is going to buy back the shares @350. I will have a profit of 150 per share.
This would be my natural thinking process when I heard the news…I thought that PCJ is going to hit 350 today as everyone else might be wiling to make profit like me.
But why did price decline today? Where did my thinking and understanding went wrong?
it is because usually it is seen, when company buy back shares, it’s price increases, simply because of fundamental ratios, so might they have analysed the stock will touch it soon, as the crash was artificial (operator made).
but the company will decide how much % of your share are eligible for buyback.