Chuz,
Re buyback vs dividend.
I consider the buyback more fair as it allows me, the shareowner, to decide when, or if, I'll pay taxes. With dividends from a non Canadian company, I pay taxes at my marginal rate. No choice whatsoever.
Buyback ethical issues. The buyback must be publicly announced prior to any shares being repurchased. I fail to see any ethical or insider issue. Again, it's the shareowners choice whether to sell or hold.
I think there are bigger fish to fry such as Fund Managers declaring one intent publicly then behaving in exactly the opposite fashion without advising the public of their change in plan. Although GV Tucker has strongly disagreed, I still believe that many analysts frequently, and knowingly, misinform the investing public. Some courts might even call this behaviour fraud. To my knowledge, no case has ever been tried, let alone a conviction registered.
Just a couple random thoughts,
Best wishes,
Ian. |
