NMDC Buyback

I have some doubts regarding nmdc buyback

1. If buy back price is 94 , why is it trading at 91 ?

2. How does buyback help in govt disinvestment target ?

I'm confused any help would be appreciated

Thanks in advance

 

I think buyback is because government gets money back on shares from company and so it helps disinvestment target. Stock is weak because it is commodity stock and market is also down. IMHO better avoid PSU stock and also of commodities sector and better to invest in Pharma, FMCG AND LOGISTICS COMPANY. Such stocks like NBFC BANKS will give better returns in long term even if they are at high valuations today IMHO.

 

NMDC is a best defensive stock in any mayhem and do not forget the dividends they paid in the recent past. I do not think all PSU's are same, may be in the case of banks it is true that now to invest now. But NMDC is better to invest for long time and the downside is limited. Even Fridays bloodbath it fell only
1.15 (-1.25%)

 

Agreed such stocks are safe stocks. It is ideal for defensive investor because government is there in control of the company.

 

When the commodity cycle turns, NMDC will shoot up i think..One needs to be patient..They have a clean balance sheet with low debts and pay hefty dividends