Opinion

Fingers, dykes and Fonterra’s $50m share buyback

Jenny Ruth
Mon, 13 Jun 2022

Fingers, dykes and Fonterra’s $50m share buyback
The Fonterra buyback aimed at lifting the share price strikes me as akin to the little boy putting his finger in the dyke. (Image: Getty)
Jenny Ruth
Mon, 13 Jun 2022
Fonterra’s plan to spend up to $50 million on a buyback aimed at lifting the share price strikes me as akin to the little boy putting his finger in the dyke in the Netherlands.Or is it throwing good money after bad?That $50m looks pretty inadequate ammunition to plug the more than $3.5 billion gaping hole of value destruction the cooperative suffered when its shares sank as low as $2.22 late last month.But there’s no denying Wednesday’s announcement provided at least a temporary boost; the shares peaked at $2.97 after it, claw...

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Finance FREE
Money Answers: what's the best share investing strategy in a recession?
Frances Cook | Sat, 02 Jul 2022

Spreading your money through good quality companies, then leaving it alone for a few years is the boring but most likely way to build wealth for most of us. 

On the Money
On The Money: Air NZ's feeding frenzy, Kerry Prendergast's movie date, and more
Pattrick Smellie | Sat, 02 Jul 2022

In this week's OTM: Greg Foran's preference for pies, Kerry Prendergast's future at the film commission, a blast from the past from Enable Networks, and more...

The Economist
The great Silicon Valley shake-out
The Economist | Sat, 02 Jul 2022

We look at the world’s startups and identify the safe, the uneasy and the doomed.

Sponsored
Digital innovation could shape the future of NZ

The digital age allows us to collaborate on some of our greatest scientific and environmental challenges

Sponsored
Investments to sustain the momentum of building in NZ

Classic Capital has opened its Land & Build fund to qualified wholesale and eligible investors.