"Day Of Reckoning" Nears As Goldman Projects A Record $650BN In Stock Buybacks

Discussion in 'Wall St. News' started by Banjo, Feb 26, 2018.

  1. Banjo


    bullmarket79 and Slartibartfast like this.
  2. Seems this might be the catalyst to propel the Dow to 50,000.

    "... As 13-D reminds us, until the early 1980s, buybacks were illegal in the U.S. due to concerns executives would use them to manipulate share prices..."

    Great. Used to be illegal. Now, standard practice.
  3. d08


    It should be so obviously illegal. Bonuses are often tied to stock price, they just use the company funds to prop up their own pay in a very lopsided way.
    This might very well be what is keeping this market alive.
    KevinD likes this.
  4. With this "tax break" money, what might corporations do with it?

    1. Improve quality of what they do with R&D expenditures.

    2. Pass the tax savings along to shareholders in the form of dividends.

    3. Expand their business to "create more".

    4. Pass the tax savings along to employees in the way of bonuses and higher wages.

    5. Use the money for buy-backs to boost share prices.

    What do you think is most likely? (Considering, of course, that executives with stock options would benefit greatly/most from increased share prices....)
    Last edited: Feb 26, 2018
    d08 and bullmarket79 like this.
  5. truetype


    Should it also be illegal to conduct secondary offerings (the inverse of buybacks)?
  6. d08


    There's no conflict of interest in this sense with secondary offerings, unless you want to get fired.
  7. it's interesting to compare sizes of initial and secondary offerings to buybacks
    anyone know how to find it?
  8. truetype


    So companies should be allowed to change their capital structure only if it's dilutive?
  9. KevinD


    Completely agree (and yes I do believe that is the marginal buyer).
  10. So a guy who got convicted of insider trading and kicked out of the industry is writing articles complaining about large companies legitimately buying back their own shares out of their massive profits ? Might confuse a few traders on here who believe a lot of shit about markets. Start another conspiracy theory about a very basic concept, cash for shares never goes out of style, it's how a publicly traded market works.
    #10     Feb 27, 2018