IBKR halted

Discussion in 'Stocks' started by KeithOmalley, Sep 26, 2008.

  1. Cutten

    Cutten

    #41     Sep 26, 2008
  2. Cutten

    Cutten

    Are you familiar with the purpose of share buybacks? The best reason to do them is because the stock is cheap, and the company has lots of spare cash.

    If you can buy $35 for $20, then that is generally a far better use of cash than spending it on organic growth. You make an instant 60%+ return on capital for all shareholders.

    Buybacks are generally a sign of:

    i) significant liquidity
    ii) shareholder-focused management
    iii) an undervalued stock

    What's not to like?
     
    #42     Sep 26, 2008