Share buy backs - Whats reasonable?
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@iKnow0 First just to say that I think Share Buyback as part of an Asset strategy is a good one. It can set a base to the Sell Price along with the benefits you describe. Not sure of the answer, but here are some rambling thoughts, may or may not be of any use....
I am not certain about just allocating a fixed % each Week for Buyback as this could mean buying a small number of Shares for a high price, also I do not think it makes sense to be buying back shares, at least initially, at greater than the issue price, so my first thought is that the Share Buy Back should be an Up To number rather than a fixed %
Needs also to be thought of in combination with the Share release itself. Is that going to be a single release at a fixed price or multiple releases over time at either a fixed or variable price? Probably only makes sense to be doing a Buy Back after the Asset is fully released, but either way needs thinking through?
So assuming "conditions" are ok for a Buy Back then I guess the % to some degree is determined by what are you planning on doing with the Burst that has been raised & the Burst generated from Mining and anything else?
So having skirted round the question I would probably set some conditions and % of profit band that I expected to work in ( 0 - 25% ) and then suck it and see while keeping the shareholders informed.
Rich
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@RichBC Hi Rich, my thought was to put up buy offers at a 1/2 to 1/3 of the last asset issue price/market price, this would be adjusted if there was a big jump in the price of burst. @Gibsalot is right I think 5-7%, 5 looks about right. The asset will be released in stages with as of yet an undetermined price structure (working on one that will not suffer the fate of previous assets). Thanks for the feedback.
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@iKnow0
the value of an asset depends on the nature of the asset.
Is the asset like a performance bond, where you get a periodic payout , and at some point in the future the asset is bought back by a big payout followed by no value to owners after that?is the asset a dividend stream with no final payout (so more like a bond that never gets redeemed)
Do the asset ownership entail ownership some of the assets of the issuer? Is there a way to hand in the asset, and get title to the assets, or get settled monetarily?
is the asset owner bound to pay dividends on a fixed percentage of income, or is the income fixed in numbers, and any additional economic value in the "asset-company" go to the "owner/issuer", not "asset owner/lender/investor"
When that is sorted out, you can decide on a future real interest rate curve, measured in some currency (fiat or burst) and determine expected future payouts far into the future, and then calculate the net present value, under the assumption of the future real interest curve.
when net present value has been calculated,
you could do a share buyback , and then re-calculate net present value for the shares left outstanding.buyback was only a good thing for the remaining owners, if the re-calculated net present value is higher than the pr-buy back net present value.
So it seems the NAV is subject to some objective estimates on future real interest rates , and therefor impossible to get exactly right.
Still, it is of course possible, and perhaps beneficial for an asset to have put in a scheme for buying back assets at a price lower than some estimated NAV - both as a service to asset holders who wants out at some specific time, and as a service to the asset holders who hang on, who then get a higher estimated NAV going forward (basically higher expected future payouts plus redemption value)
You would have to adjust any limit orders as burst price rise and fall, or else your buy prices might suddenly be too generous if burst price is up a lot.
i'm thinking something along these lines :
(the 0.6 is an example)
- set buffer to 0.6
- calculate current NAV in burst
- put in limit buys at NAV*buffer
: here - wait for NAV measured in burst to move by a factor of buffer/2
- re-calculate NAV measured in burst
- move limit buys to NAV*buffer
goto :here
You could also put in sells at buffer = 1.4 or someplace else in overvalued-land
Because burst tends to move a lot in price, you need a big buffer or you need to monitor and update prices regulariy, or you need to make the bids and asks only small positions, or you need to change the scheme into market buying and selling at the time NAV is calculated, and not as a floor/ceiling limit order that stay on as NAV drifts around after having been calculated.
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@iKnow0 no one wil buy your ponzi sCAMMING asset . miners keep your bbust fake people are many here ,
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@jumbolin huh?? i have not issued any assets.
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@iKnow0 dont bother to issue you it .because you are already coward,
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@jumbolin haha you're as current as the link in your signature.
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@socalguy Looks like he was back for less than a day lol... check out his recent posts, nothing but semi-coherent vitriol being spit at all the wrong people. @iKnow0 I like your plan, and think that 5% maximum should go towards the rebuy... as was pointed out already, you don't want to take too much away from the div payouts.
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you guys sucks
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50% to buy backs at 80% of issued price. As shares are bought back divs will increase for all. Say no one is selling into your buyback...once you post enough buybacks to cover each issued asset then can start paying more earning to dividends...
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Really depends on amount of shares you plan on issuing too and at what price. If your issuing over 100k shares then I'd like to see 50% to buy backs that way it doesn't take a million years to make the asset completely liquid at only a 20% loss
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the fairest buyback i can think of is what the asset was originally issued at.
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Iknow0 I know my plan probably sounds outlandish as all F* especially to someone as you that is a expert but think with me here for a second.
If this coin were to ever run from this current 400-450 to 1k. Then if it were to run from 1k to 2k.....The last thing any of us are going to want to be holding is a bunch of asset shares.
What is the biggest thing missing from the exchange other than plentiful quality assets? Liquidity IMO
Our exchange is so small that it is really up to the asset itself to provide liquidity. Sacrifice in the beginning to build up the liquidity for investor assurance.
If the coin does run and the assets are dumped their dumped right back into the asset thus increasing dividends for all remaining holders.
Wouldn't make much for a big dividend payer to start but with investor assurance of buy backs at 80% it could make for a nice trading asset.oh and please don't take away decimals on the price. No decimals on the shares.


