Why a stock falls even after buyback is announced.

mg23

New Member
#1
Dear Traderji,

Can you please explain why a company's stock would fall even after company has announced a buyback at a higher price. I am talking this in reference to etc network. It was @41.20 when board announced buyback @50 for 10% equity shares but from then on its falling and has reached @36.65.

-mg
 

Traderji

Super Moderator
#2
mg23 said:
Dear Traderji,

Can you please explain why a company's stock would fall even after company has announced a buyback at a higher price. I am talking this in reference to etc network. It was @41.20 when board announced buyback @50 for 10% equity shares but from then on its falling and has reached @36.65.

-mg
One of the few real secrets in trading is that most of what you read in books, newspaper and hear in the media does not work in the real world.

As in the case of ETC Networks the market had probably discounted this bit of news.

Learning to trade is a combination of being exposed to ideas plus practical experience watching the markets on a day-to-day basis. This is not something that can happen in only a few weeks or months.

Professional trader and money manager Russell Sands describes the makeup of a successful trader: "Intelligence alone does not make a great trader. Success is equal parts of intellect, applied psychology, practice, discipline, bankroll, self-understanding and emotional control."
 

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