what is the logic in the announcement by the BOD to purchase common stock shares by issuing preferred stock and borrowed funds. normally stock repurchases are paid from free cash flow, not borrowed funds! going in debt to buy your own stock does not make good sense.
They are all still here and don't appear to be going anywhere. If they have some crazy idea that they can weaken this stock and pretend to be good stewards it's not working. If they have some crazy idea that at some point management can get assistance with a leveraged buyout of a weakened Allstate stock they can have the dog and pony show.
This decision to finance a share buyback seems an act of desperaration to make earnings look better than what they are. When you couple this with the CEO's penchant to give stockholder money to schools and causes he favors after having slashed dividends over 50% you really wonder what he will do next.
Exactly..... It's almost like a childish fit being thrown at S&P to do exactly everything at one time again to further make them decide to trigger a downgrade as the language in their statement explained.
This is out of control insanity!!!! Worse than a conservative dividend cut to preserve capital responsibly and also avoid a downgrade. What else a downgrade might trigger I don't know. Who out there does?
It's really, really like a childish fit aimed at S&P as if there is a back-stop or some other Plan B intended after the mayhem from the wreck that will occur.