They have 2.9 billion now in the share buyback program. At $160/share, that will buy over 18 million share. There are 810 million shares in the float. I'm not seeing how that would be a big impact. Believe me I would love a higher pps too I just dont think this is the way to go about it.
I've never understood why any shareholder would want his company buying its own shares with shareholder money. Dividends are awesome. Ongoing shareholders get cash out of the company. Share buybacks punish steady shareholders and reward flippers and execs who are granted free NQSO's and RSA that they sell every month into the buying that's being done with shareholder money via the buyback. So everyone is selling and getting paid except the steady shareholder, who is beholden to market conditions and executive execution to earn the priveledge of unrealized stock appreciation gains. You think that situation is positive for shareholders? I think it's a #$%$ scam and any exec selling that idea to his/her BOD shold be fired. The best thing you can say about it is that it allows an underperforming exec team to cover up their mess, inflating EPS period-over-period. And how is that accomplished? Not through real performance, but by buying it! But not with their money, with shareholder money.
Yes, that's #$%$ awesome!!
Amazing what people will believe.
Guess I have a more simplistic view. For me it's about about supply and demand. After living through the 90's in stock split heaven until the stock was totally diluted, it just seems like a good a approach to help keep shareholder value intact. At least they aren't issuing more stock.
I disagree. I would be disappointed if companies didn't buy back shares to cancel out the dilution of new shares via stock compensation plans and I prefer my shares to go up by 1% rather than get paid 1% because of cap gains.
he ideal scenario would be it if all companies were just required to expense stock options and employee options were just a tracking device that converted to a future dollar amount within the company. Each co. wold FAS 133 and do the mark to market liability tracking and therefore no open market buys and no anti-dilutive measures needed.