No. of Recommendations: 0
An idea I've thought of before, I don't know if any companies do anything like this:
- declare a "dividend" each quarter but don't pay it out, just keep a record of the cumulative amount
- do weekly buybacks according to some mechanical rule, e.g. spend 2% of the pot each week, but only if the share price is less than the 200 day SMA (maybe plus 5% or something)
I started doing a spreadsheet to check if this would work, i.e. the buybacks would be at a noticeably lower average price than if they were simply done every week but I haven't got it right yet. Could be a problem with this approach, but me screwing up the spreadsheet is just as likely.
SA