There are several filters that people use to alert them to good stocks. Taking note of great products and then finding out who manufactured them is one way; looking for good dividend paying stocks is another, and looking at companies who plan to buy back their own shares is a popular way as well.
The rationale behind this is that companies who are willing to buy back their own shares think that the shares are undervalued, and are investing in them. This is also an action that is focused on increasing the share values, so thatâ€™s another reason this method is used as well.
Just to be clear, this is not a list with only those companies that currently have buyback offers open, but also includes those companies that have concluded buybacks in the past. Thatâ€™s because the idea of this list is not to find companies that provide opportunities to buy shares from the market and then offer them for the buyback but to see if there are generally any companies here that can be good long term investments.
Here is a list with some companies I could find.
|S.No.||Company||Max Buyback Price||Close Date|
|Â 1||Allied Digital||Rs. 140||17 Feb 2012|
|Â 2||Deccan Chronicle||Rs. 180||3 Jan 2012|
|Â 3||FDC||Rs. 135||25 Jan 2012|
|Â 4||HEG||Rs. 350||13 Mar 2012|
|Â 5||Infinite Computer Solutions||Rs.230||10 April 2012|
|Â 6||PVR||Rs.140||26 May 2012|
|Â 7||Reliance Infra||Rs.725||13 Feb 2012|
|Â 8||SRF||Rs.380||25 Feb 2012|
|Â 9||Zee Entertainment||Rs.126||23 March 2012|
|Â 10||Piramal Healthcare||Rs.600||13 Apr 2011|
|Â 11||Lakshmi Machine Works||Rs.2045||24 Feb 2011|
|Â 12||India Infoline||Rs. 99||07 Feb 2011|
|Â 13||Siemens||Rs. 930||13 April 2011|
|Â 14||Merck||Rs. 435||21 May 2010|
|Â 15||Aegis Logistics||Rs. 143||6 Feb 2010|
|Â 16||Amrutanjan||Rs. 900||18 July 2011|
To be honest,Â I’veÂ never been a big fan of finding companies in this way because sometimes I feel that buybacks are announced more as gimmicks to jack up share price, and many times when you look at companies offering a buyback program in India â€“ you also find stronger competitors and that makes you think why not invest in those instead.
On the other hand, Iâ€™ve heard investors who have found good ideas this way, and since Iâ€™ve never had a post on this â€“ I thought Iâ€™d start a post on this topic here.
Iâ€™m sure there are several other buy back shares that Iâ€™ve missed â€“ do leave a comment if you know of any company that doesnâ€™t figure in this list.