Not exact matches
And those earnings will
occur while a repatriation effect is unleashing $ 1 trillion of stagnant cash in some form of robust redistribution (dividends or
stock buybacks) or as productivity - enhancing capex spending.
A
stock buyback, or repurchase,
occurs when a company buys its own shares off the market and therefore reduces the amount of
stock outstanding.
A reduction in shares outstanding can
occur as a result of a company
stock buyback.
Although there are many who believe a freefall is coming, much like a trampoline, a naturally
occurring financial mechanism has provided a relentless bid to boost
stock prices higher... a
buyback bonanza!
Alternatively, even if the idea of a cash dividend didn't
occur to anybody in that world, investors would realize the
stock price is depressed and could propose and vote for the board to institute share
buybacks.
Obviously with tech companies and their cash holdings, their approaches to
stock comp /
buybacks / repatriation / capex through acquisition etc have to be borne in mind, and how much of it is effectively working capital in one form or another — but it
occurred to me that there are a few companies out there where cash balances could make a material difference to valuation (even more so than picking the right multiples with some!)