Re: Seeking Alpha article, 4 Mega-Cap Socks with the largest share buyback activities
Companies typically do buybacks for one of the following reasons:
1. Using their own micro and macro analysis, they conclude that, at going prices, the shares offer value;
2. Indication that they have strong cash flows to support such moves;
3. Better use of the cash;and
4. As I have stated in the past, AT&T is a blend of a utility, because it pays a high dividend, and a high tech because of the AT&T Labs incorporates the latest technological innovations to data "security" and transmission. The author does not cite this unique differentiator in his coverage.
Last, Apple has accumulated a substantial amount of cash earning next to nothing. The shareholders are correct to strongly object to the strategy of doing nothing with the cash. They could make a better use of the cash either to enter new markets and if not return the cash to the shareholders. Doing nothing does not work, not even while we are at home.