Posts Tagged ‘Stock Buybacks’
Bad Buying
For the 12 months ending 1/31/14, S&P 500 firms spent $478 billion buying back outstanding shares, and in the quarter ending 1/31/14 spending on buybacks rose 29% compared to a year earlier. Seems the higher the stock price, the more committed firms are to buybacks. During the last bull market buybacks peaked in the quarter…
Read MoreWhat’s my Share?
Firms frequently buyback their own shares when they think they are undervalued. Problem is, firms often get it wrong! So far this year HP has spent $7.6 billion to buy 200 million shares at about $38/share. In ’10 HP spent $11.3 billion to buy 250 million shares at about $44/share. HP shares currently trade at…
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