CNBC, 98 Companies Announced 2012 Special Dividends
Just reported on CNBC........can't believe Yahoo isn't giving us a dime for the pain of the last 5 years. I own lots of stocks which have been doing massive buybacks. Believe me, stock price has not risen in proportion to shares reduced.
This is exactly why the shorts are being poured in - there is not even one cent profit increase expected for the entire 2012 fiscal year and yet some people think that the stock price will continue to go up even though the share buyback does nothing to the future earnings stream.
The technicals are turning fast and now the stock will have to retrace to 14.52 before it can continue to advance if it in fact ever does.
I meant the 2013 fiscal year - and stocks trade on the accumulated future earnings stream.
This has not changed at all so the stock price reflects yahoo buying back shares at a premium which will end up being a net loss for the company - all of this while special dividends are being issued by many companies and Yahoo gives shareholders nothing.
"Believe me, stock price has not risen in proportion to shares reduced."
That is because many of those shares have since been promised as options and restricted stock grants. Add in the general decline in the business and you really should be happy the stock is where it is.
Overpriced by a $1.52 as I type this from it's full value of $17.20.