Huge Fifth Third stock buyback sends shares soaring

Huge Fifth Third stock buyback sends shares soaring

Fifth Third (Nasdaq: FITB), Cincinnati’s largest locally based bank and the nation’s 13th-biggest, said it reached a deal to buy back $990 million worth of its own stock from Goldman Sachs & Co., according to a Securities and Exchange Commission filing. Shares in Fifth Third soared 3.5 percent over a two-day stretch. The stock gained 91 cents combined Monday and Tuesday to close Tuesday at $27.02. It’s approaching its 52-week high of $28.97 achieved March 1. Full Story

Robin Hood robbed the Rich to help the poor; in the modern day version the Rich rob both Robin Hood and the poor to become even richer.  The rich in this case are the greedy corporations and the officers that run the show behind the scenes. In this lazy world, the only thing that matters is money and how to make as much of it as fast as possible. Hence, the best way to boost earnings without doing anything is to buy back boatloads of shares and in doing so artificially boost earnings.  It is a perfect scam.  Full Story

The next round of share buybacks has started, and this one promises to be even bigger than the last one. EPS will magically improve, corporate officers will walk away with millions, and the market will continue to rocket higher. One day the party will end but today’s corporate officers don’t care because they will have banked millions by the time that comes to pass.

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