Stock Buybacks

[togor]

Given where we are, the policy of companies ploughing cash back into the market, to buy their own shares, at premium prices, looks terrible.

Why?

Because that is cash companies could use now to ride through this bad episode, instead of clamoring for government aid. Sure, companies could sell those shares back to raise cash, but in this market? And why, if the government will help out?

In other words, they bought when they should have sold, or at least stayed. The last two years of the market was a mirage that isn't coming back.

[Sandpebble]

We've once again seen what happens when we play monetary musical chairs ..... and the music always stops.

My town has... or had .. a very beautiful harbor on the Gulf of Mexico . For the benefit of stock dividends it was destroyed by the current construction of large condo and hotel buildings.

Half done, the construction of these projects have been halted . And now it is likely my beautiful harbor will look like bombed out Beirut for years to come.

The rest of the town is littered with the construction of new strip malls and restaurants while old strip malls remain empty with no renters ....

All this I'm told will create jobs .... in an area where every business in town is already unable to fill it's staffing needs.

Growth ?.... what growth ? even without the virus , here in sw Florida it was a headlong sprint into another monetary crash .

Just spent five years struggling to hire people with little success ... now I'm struggling to prevent laying off...... all in a blink of an eye

[S.A. Boggs]

We've once again seen what happens when we play monetary musical chairs ..... and the music always stops.

My town has... or had .. a very beautiful harbor on the Gulf of Mexico . For the benefit of stock dividends it was destroyed by the current construction of large condo and hotel buildings.

Half done, the construction of these projects have been halted . And now it is likely my beautiful harbor will look like bombed out Beirut for years to come.

The rest of the town is littered with the construction of new strip malls and restaurants while old strip malls remain empty with no renters ....

All this I'm told will create jobs .... in an area where every business in town is already unable to fill it's staffing needs.

Growth ?.... what growth ? even without the virus , here in sw Florida it was a headlong sprint into another monetary crash .

Just spent five years struggling to hire people with little success ... now I'm struggling to prevent laying off...... all in a blink of an eye

So sorry to hear of your situation. We might disagree politically, however I wish you well and with your spirit one knows you will succeed.
Sam

[Major Tom]

Same thing is happening here in a small town in Iowa on the Mississippi river. Our city council spends money like it grows on trees. Our infrastructure (streets) are literally crumbling and filled with very large potholes making driving dangerous when you have to swerve into the oncoming lane to avoid tearing a tire off. New buildings going up when none are needed. These new buildings are being paid for by the tax payer thru tax derferments for the builders/owners. They say it will attract new businesses. They built a 17 million dollar flood wall to protect the downtown area, but it is only one block long and the river last year went around it and flooded the downtown anyhow. Now they want to improve the looks of the waterfront because Viking Tour boats are going to dock here in 2022 (also have to build a dock for them). They say this will attract tourists to our downtown so that they can look at all the empty buildings there. Even our one mall is crap after all the big name stores packed up and left town. BTW, our property taxes go up every year while the neighborhoods go to hell from forced intergration of welfare humanoids.

[PaFrank]

All stock prices are depressed in this market and stock buybacks CAN BE a good thing, if the shares are retired. If they are retired, it reduces the $$ that must be paid in dividends, and usually will increase the dividend, (not immediately) and prop up or grow the stock price.
However, if the company is buying back stocks and not retiring them and lets say uses them for executive compensation, that's nothing more than a John Kerry fast shuffle and the average stockholder is screwed and they don't even know it.

[togor]

Stock buybacks in the recent trends were used to keep the stock price up, as an alternative to dividends to distribute money to shareholders since many companies, particularly tech, don't pay dividends. That's money not put to work growing the company through R&D or at least saved in a rainy day fund.

[jon_norstog]

Well, it was real money representing a lot of work and value created, and it just went up in smoke. Poof!

Like that.

jn

[lyman]

Same thing is happening here in a small town in Iowa on the Mississippi river. Our city council spends money like it grows on trees. Our infrastructure (streets) are literally crumbling and filled with very large potholes making driving dangerous when you have to swerve into the oncoming lane to avoid tearing a tire off. New buildings going up when none are needed. These new buildings are being paid for by the tax payer thru tax derferments for the builders/owners. They say it will attract new businesses. They built a 17 million dollar flood wall to protect the downtown area, but it is only one block long and the river last year went around it and flooded the downtown anyhow. Now they want to improve the looks of the waterfront because Viking Tour boats are going to dock here in 2022 (also have to build a dock for them). They say this will attract tourists to our downtown so that they can look at all the empty buildings there. Even our one mall is crap after all the big name stores packed up and left town. BTW, our property taxes go up every year while the neighborhoods go to hell from forced intergration of welfare humanoids.

sounds like we live in or near the same town,,,,,


RVA built a flood wall that works well, it was done right,
however a big storm (Gaston) flooded the low areas the wall was designed to protect,

granted, a freak storm in an area that has been saved numerous times by the wall, but still, goes to show not everything always works as it should,



and ditto the roads and new construction,


lots of new places, and little road repair, except on the block the new construction is on