If he didn't have any confidence in the company, he would have purchased WDC shares. He spent $6 million to acquire 200,000 shares. He will make $504,000 in dividends a year. Not a bad investment. Plus i love that fact that he is very customer oriented and shareholder friendly. What else can you ask from a CEO???
Yes, SHAREBUYBACKS are a NON TAXABLE event-Dividend is a TAXABLE event. Stocks prices are driven up by higher EPS low PE ratios. For example, BBY should have paid the special dividend ONLY if the stock was trading above $45 a share. At above $45 a share, share buy backs are considered wasting capital; therefore you issue a special dividend. At $25 a share you aggressively buyback shares and NOT issue a special dividend because it's more efficient to spend capital on buybacks. $150 million divided by $25 is equals to 6 million share. $150 million divided by $45 is equals to 3.3 million shares. The board of directors needs to have extra cash put aside for when the stock drops to a 52 week low. BBY currently has 323 million shares outstanding. BBY can reduce the shares outstanding to 189 million by spending $4billion over the next 5 years on buybacks at an average price of $30. If BBY generates a constant profit of $1.2 billion a year, in 5 years EPS WOULD be around $6.35 times a 15x and it has a price of $95. Make sense????????
You are the idiot of the year. How can you be so stupid? Do you have a brain?
GME will outperform GPN for the simple fact that GME has a PE ratio of 9 while GPN has a ratio of 34. GPN needs to grow their EPS to 5 if it wants to have a PE ratio of 15. GPN needs to grow their EPS to 8.5 to have a PE ratio of 9. GPN will not be able to accomplish both anytime soon. Watch and learn.
They should cut the dividend so that they can spend more money on buybacks. The $17 billion of free cash flows should be spent on buybacks.
IBM underperformed all of 2015, yet the board of directors only spent around $4 billion on share buybacks. In 2014, IBM board spent around $12 billion on buybacks even though the stock was well above $150 a share. last year would have been a great year to spend $15 billion on buybacks because of the underperformance. The board of directors needs to shrink the shares outstanding down to 400 million by the year 2025. Net income should be around $17 billion by 2025. IBM would have an EPS $42.5o, and IBM would be trading for about $637. Anyone want to contribute????
I think the board of directors made a mistake by issuing a special dividend at a time where bby is trading at $30 a share. They should have used the $150 million to buy more shares back. It would have reduced the shares outstanding by another 5.5 million shares. It would have resulted in higher EPS in the long run. I would rather have a huge long term capital gain vs dividend.
Lampert is running the company to the ground so that he can take it private. I'm waiting for shld to hit $5 a share. Lambert will then make a bid to take the company private at a "high" premium of $9 a share for a total deal of $1 billion. Lampert will not even mention that the real estate alone is with around $30 billion plus maybe another $5 billion in brand names. SEC needs to investigate Lampert.
What is wrong with CEO's timing on share buybacks. IBM spent around $12 billion in 2014 in buybacks-the stock was above $150 most of 2014. in 2015, IBM spent around $4 billion on buybacks while the stock underperformed very badly. IBM should have spent $15 billion on buybacks in 2015. Stupid CEO should not get any compensation.
If you really think so, you should short a few million of GPS. Put your money where Andrew Left's mouth speaks. GPS generates over $900 million in free cash flows. I'm not worried about a cash cow going under $20 a share. IT WON'T HAPPEN.
Are you that stupid to read financial statements?
haha. Sure. GPS generates over $1 billion in free cash flows. The company keeps buying back shares. EPS of $2.45 times 15 = $36 a share by the end of June. Company has very little debt. If citron decided to short GPS at $60 a share, he would have a valid point. Andrew doesn't have a valid point at $26 a share.
Good for you. Fat pig??? isn't that what your wife calls you after you eat???? keep shorting. I wish you were shorting a few millions dollars so that you get burned after earnings. what you are shorting like 2 shares??