Stock buybacks....thoughts

[jonnyfrank]

META soared on the news of stock buybacks. What are your thoughts on stock buybacks?

[Yodean]

META soared on the news of stock buybacks. What are your thoughts on stock buybacks?

bullish

[chippermon]

META soared on the news of stock buybacks. What are your thoughts on stock buybacks?

An easy way to for a shitty company to boost EPS without having to earn it or help it hide an underlying problem that might affect financial results. An easy way for compensating the c suite by cashing in their options owed without diluting the float at a higher price.

Shouldn't they just re invest it in capital infrastructure or buy another company or increase business in some way? Expansion? R&D?

[jonnyfrank]

META soared on the news of stock buybacks. What are your thoughts on stock buybacks?

An easy way to for a shitty company to boost EPS without having to earn it or help it hide an underlying problem that might affect financial results. An easy way for compensating the c suite by cashing in their options owed without diluting the float at a higher price.

Shouldn't they just re invest it in capital infrastructure or buy another company or increase business in some way? Expansion? R&D?

I share this thought. It is crazy how the share price flew up with the sticks and twigs approach.

[SOL]

META soared on the news of stock buybacks. What are your thoughts on stock buybacks?

An easy way to for a shitty company to boost EPS without having to earn it or help it hide an underlying problem that might affect financial results. An easy way for compensating the c suite by cashing in their options owed without diluting the float at a higher price.

Shouldn't they just re invest it in capital infrastructure or buy another company or increase business in some way? Expansion? R&D?

This is the easy way to placate the so-called modern investor that wants returns now at the expense of tomorrow's growth. This practise will only increase as the money supply increases. It is an easy way to boost EPS while taking on mountains of debt. It looks good until it does not

[Eric]

I've read compelling arguments from both camps. My gut leans slightly towards ît being a bad thing. "We're completely out of ideas and can't provide a return on capital...."

On the other hand, I make money from buybacks (or in this case lose less).

[Budge]

META soared on the news of stock buybacks. What are your thoughts on stock buybacks?

Short covering

[Budge]

I've read compelling arguments from both camps. My gut leans slightly towards ît being a bad thing. "We're completely out of ideas and can't provide a return on capital...."

On the other hand, I make money from buybacks (or in this case lose less).

Check the level of stock option issuance. Issue less than buyback, not so bad. Issue more than buyback, hmm.

My view is if they can't find a better use for their extra cash - to increase the long-term success of the company - declare/increase the dividend. And don't borrow to do it. Smacks of self-dealing.