What Is the Stock Buyback Theory?

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Tip 1 - 6 Bad Stock Buyback Scenarios

Published: 9 years, 4 month(s) ago | Submitted by Aza Mc G | permalink

Buying back shares can be a sensible way for companies to use extra cash. But in many cases, it's just a ploy to boost earnings.
Tags: share buyback,share buybacks,shares buyback,buyback of shares,share repruchase,stock buybacks,share buy back,stock buyback,repurchase share,bubyback stock,stock repurchase,repurchase stock,fundamental analysis,investor relations,corporate governance,eps,shareholders

For further reading: http://www.investopedia.com/articles/stocks/10/share-buybacks.asp ^[1]

Tip 2 - The value of share buybacks

Published: 9 years, 4 month(s) ago | Submitted by Melissa Pireni - Ndebele | permalink

Companies shouldn’t confuse the value created by returning cash to shareholders with the value created by actual operational improvements. After all, the market doesn’t. A McKinsey Quarterly article.
Tags: Share buybacks,value of buybacks,companies buy back stock,Capital management,recoup the cost of capital,increase in share price, increase in earnings per share, company's intrinsic value

For further reading: http://www.mckinsey.com/insights/corporate_finance/the_value_of_share_buybacks ^[2]

Tip 3 - Beware the Stock-Buyback Craze

Published: 9 years, 4 month(s) ago | Submitted by Hussam Fouda | permalink

Investing in companies that are buying back shares is a time-tested strategy. But the rapid pace of buybacks is one reason for caution.
Tags: Ben Silverman,Howard Silverblatt,Stoyan Bojinov,corporate funding,share capital,ownership changes,acquisitions,mergers,shareholdings,corporate actions,corporate,industrial news,share buybacks,political,general news,personal investments in mutual funds,personal finance,personal investments,trusts,funds,financial vehicles,unit trusts,mutual funds,financial services,investing,securities

For further reading: http://www.wsj.com/articles/beware-the-stock-buyback-craze-1434727038 ^[3]

Tip 4 - The Pros and Cons of Stock Buybacks

Published: 9 years, 4 month(s) ago | Submitted by Eric Narsolis | permalink

If done right, share repurchases can create more value for stockholders. But how often are they done right? The Wall Street Journal invited Whitney R. Tilson and Gregory V. Milano to debate the issue.
Tags: corporate changes,stock listings,performance,earnings,dividends,funding,capital,share capital,initial public offerings,ownership changes,acquisitions,mergers,takeovers,management issues,corporate actions,corporate,industrial news,share buybacks,content types,factiva filters,fc&e exclusion filter,fc&e industry news filter

For further reading: http://www.wsj.com/articles/SB10001424052970203824904577213891035614390 ^[4]

Tip 5 - The buy-back delusion

Published: 9 years, 4 month(s) ago | Submitted by IGORS BICHKOV | permalink

THE belief that share buy-backs are a universally good thing seems hard to shake, even though there was a time when they were seen as a sign of the lack of...

For further reading: http://www.economist.com/blogs/buttonwood/2011/05/stockmarkets_0 ^[5]

Tip 6 - The repurchase revolution

Published: 9 years, 4 month(s) ago | Submitted by Dan and Bonnie Kliamovich | permalink

IN THE decade before America’s housing bubble burst, Home Depot, an American home-improvement chain, spent heavily on building new shops to meet rampant demand for...

For further reading: http://www.economist.com/news/business/21616968-companies-have-been-gobbling-up-their-own-shares-exceptional-rate-there-are-good-reasons ^[6]