[In-Depth Analysis] Samsung Up 9%, SK hynix Up 11%: Will Samsung Match SK hynix’s 100-Trillion-Won Return Plan?

An independent exercise, not a statement by the video creator or verification of every claim in the video.

The same buyback can lead to cancellation or compensation

Assume a hypothetical company has 100 shares outstanding excluding treasury stock and net income of 100, giving earnings per share of 1. If it repurchases and cancels 10 shares while earnings stay unchanged, earnings divided by 90 shares become approximately 1.111 per share. If the same 10 repurchased shares are instead all distributed to employees, the count returns to 100 and the same earnings produce 1 per share. Examine final share use and the share-count change alongside the repurchase amount. Cancellation alone does not increase total earnings or cash.

Check for yourself

1. How much repurchased stock is allocated to cancellation versus employee distribution?
2. Do disclosures distinguish announcement, completed purchases and completed cancellation?
3. Do earnings and financial capacity remain intact after compensation expense and cash spending?

Limits of application

This simplified example holds net income and other share changes constant and uses ending shares. Actual EPS reflects weighted-average shares, compensation expenses and dilution, among other factors. Repurchases require cash, so higher EPS alone guarantees neither higher fair value nor a share-price floor.