Abbey's Gallagher Says Housing Market Outlook Has Worsened

I don’t know a lot about building, but it seems to me that if a company thinks it’s shares are under valued then buying them back might be seen as a good use of cash. The investment horizon need not necessarily be 1 year.

Other reasons such as reducing cash on hand, being less attractive for takeovers etc I can’t comment on because I just don’t know one way or the other.

I just think that if you’re fairly confident that your company is going to do ok in the medium to long term, and if you believe it’s under valued, then really you are left tom compare buying back shares in it, or finding some other use for the money.

If you are in construction at the moment then there might not be a wealth of other opportunities.

The question has to be asked when is a good time to buy back shares, if this isn’t? Construction stocks are out of favour, and the don’t seem to have a great need for the cash.

I suppose we’ll see in the fulness of time.