Geli repurchase shares can actually be considered that this is a responsibility to investors, a healthy company should be used to buy back shares or pay dividends, and now Gree is doing one of these behaviors.
Recently came out the news that Gree is going to spend 14 billion to buy back shares, this news can be said to be uplifted the confidence of Gree's stock holders, Gree since the company can have such a large sum of money, it is clear that it will be to the capitalist confidence to produce incentives. Before Gree announced this news, the United States empire had also announced that spend 14 billion to buy back shares, and finally actually spent more than 8 billion to buy back shares. And this time, if Gree can really buy back shares with 14 billion yuan, then Gree will certainly be able to set a record for the largest single buyback of A shares.
Greece's purpose of this buyback is actually nothing more than two, first is that Gree believes that it is a valuable company, their own strength of their own confident enough, so it will recover the excess shares, due to the shares in circulation less, plus the company to create the value of the year more than the year, relatively speaking so that the price of Gree's shares are also all
The second is that the company wants to recover the redundant shares , less shares in circulation, so that can reduce the risk of GREE shares are a little bit of cannibalism , after all, sometimes barbarians are not impossible to appear.
I have to say that Geli is really a very confident company, of course, Dong Mingzhu's decision-making is also convincing, this time, Gree can spend such a large amount of money for the repurchase, in itself is a kind of self-confidence in their own strength, and then is also want to create a better business environment for Gree. Gree Group's decision-making is basically far-sighted, not only for the sake of Gree Group itself, but also for the sake of consumers can get better service. Under the leadership of Dong Mingzhu, Gree Group has gained core technology, and naturally the business strategy will be different.
Consolidating all of the above, Geli's buyback of shares actually has only two purposes, the first is the confidence in their own value, and the second is to reduce the risk of being acquired by foreign investors. Gree's decision-making is still far-sighted, which will undoubtedly invigorate investor confidence.