From the "Manual of Ideas"...
VALUE CREATION VIA BUYBACKS Share repurchases tend to be particularly accretive in the case of companies generating cash from operations while trading below tangible book value.
Why are they particularly accretive given these conditions. This is not clear to me at all how to think about this.
If such companies apply free cash flow toward buying back stock, they accrete tangible book value per share...
Why is this?
...widening the gap between the market price and the accounting net worth. It becomes exceedingly difficult for the stock price to decrease when the discount to book value per share keeps getting wider if the stock price remains constant.
This also is not clear but may be explained by the bits above.