If they buy
back stock at levels that are too high, it does not increase the intrinsic value of the firm, though it might keep the price higher for a little while.
It's gotten quite common to buy
back stock at very high prices that really don't do the shareholders any good at all.
Given your belief that Berkshire's intrinsic value continues to exceed its book value with the difference continuing to widen over time, are we at a point where it makes sense to consider buying
back stock at a higher break point that Berkshire currently has in place and would you ever consider stepping in buying back shares that did dip down below 1.2 times book value per share even if that prior years» figure had not yet been released?
Managements that buy back stock should have a firm handle on the value drivers, such that they only buy
back stock at a discount to the firm's private market value.
Buying
back stock at uneconomic prices temporarily keeps the stock price high, and removes cash from the balance sheet that an acquirer could use to help purchase the company.
This causes the thinly traded stock's price to trade up, forcing the short - seller to buy
back stock at far higher prices than he had hoped, which sends the price of the stock higher still.
If you like our businesses, buying
back stock at tangible book value is a very good deal.
Perpetual stock gives the company the right to buy
back the stock at any time under specific terms defined in the prospectus.
There is evidence in specific cases that buying
back stock at high prices destroys value, but what high prices are is often only know in hindsight.
Managements are nearly entirely devoted to squabbling over spending money, political fiefdoms, getting the most power or resources, maximizing their options which typically reduce return on capital, buying
back stock at high levels (when rationally they should be doing a dilution arbitrage, so that investors who bought at rational levels would receive a positive return of cash provided by those who irrationally buy into bubbles), not buying
back stock at low levels (when rationally they should be buying, to arbitrage the other direction), etc..
I want to avoid companies that buy
back stock at all costs.
The companies that actually do buybacks, as opposed to merely announcing them, do very well, and that is intensified for those that buy
back stock at high free cash flow yields.
Yeah, going back to that about $ 1.75 cash you have on the balance sheet with the stock trade $ 0.80, and we're willing to buy
back stock at $ 1.53, why will you not contemplate, and you have a 4 million share repurchase authorized, why won't you engage in privately negotiated transactions, or a Dutch auction tender offer?
That measure does not take to account the losses that occur from one - time events and chicanery that comes from buying
back stock at prices that are too high.
A manager who buys
back stock at a peak valuation destroys value as surely as the manager who issues shares at a trough valuation.
Less visible, but equally impoverishing, are sins of omission: When undervalued, overcapitalized companies fail to grab a rare opportunity to buy
back stock at a wide discount from intrinsic value.
There is evidence in specific cases that buying
back stock at high prices destroys value, but what high prices are is often only know in hindsight.
Given your belief that Berkshire's intrinsic value continues to exceed its book value with the difference continuing to widen over time, are we at a point where it makes sense to consider buying
back stock at a higher break point that Berkshire currently has in place and would you ever consider stepping in buying back shares that did dip down below 1.2 times book value per share even if that prior years» figure had not yet been released?
The investor anticipates that the stock price will fall, allowing him or her to buy
back the stock at a lower price in the future.
«In prior years, I explained why buying
back our stock at tangible book value per share was a no - brainer..
By inefficiently utilizing valuable capital to buy
back stock at inflated prices, the company destroyed value for long - term shareholders.
And then the second question for Sabrina, on the line of credit, and your appetite for buying the stock back here, is there a minimum cash balance or just kind of viewpoint as we look into next year, what your appetite could look like to be buying
back stock at the pace you have the last couple of years?
IBM has given investors a multiyear EPS road map that relies mostly on its software and services businesses, and its ability to buy
back stock at the right times.
Not exact matches
When the
stock consistently trades
at or around the upper band, traders may consider waiting for a breakout above the band or for the
stock to fall
back toward the moving average to establish a new position.
Targeting
at Amgen specifically, Worth looked
at a chart dating
back to 1984 and compared it to the S&P 500 as well as other «mature growth»
stocks, including McDonald's, Nike, Home Depot and Apple.
Grocery shopping shouldn't set you
back more than $ 150 a month
at one of the country's western style supermarket chains such as Lucky or Thai Huot or well -
stocked minimarts like the famously named 7 - Elephants.
Over the past 12 months, its
stock price has shot up from $ 29 to $ 48, then slid
back down to $ 23, then jumped up to $ 40, and it now sits
at $ 27.50.
Why should trying to sell a home
at the top and buying it
back at the bottom work out any better than the dismal record of those who have tried timing the
stock market?
That makes the Trump Bump, for now, the largest post-election gain in percentage terms by the Dow index over that time frame —
at least going as far
back as the Hoover Mover, when
stocks rose 3.6 % following Hubert Hoover's election.
Perhaps the most important part of that strategy relies on Target resolving its distribution woes and
stocking shelves this August with everything a parent or kid could want on a
back - to - school list, as well as those special items they can't find
at other stores (Shaun White's collection of skate shoes and apparel, for instance).
Now that inflation is
back in the crosshairs of the markets, as investors try to understand what has caused such a swift correction in
stocks, it's worth looking
back at what Buffett has said about inflation in the past.
Last year, Giles Keating, the former head of research and deputy global CIO
at Credit Suisse, and his team reviewed data on major geopolitical events in the previous 100 - plus years and found that
stocks generally bounced
back up after these shocks.
Wolfers, professor of economics and public policy
at the University of Michigan and several other institutions, soon shot
back saying the
stock market performed better under Obama than under Trump
at the same point in their presidency.
«For one, Comcast could buy
back its own
stock at 8x vs acquiring Sky
at 12x; although the deal is expected to be accretive in Y1, we question the synergies given the cross border combination.»
But instead of obsessing over the gap between the U.S. and Canadian price on the
back of the new Annie Proulx novel, take a look
at your
stock portfolio.
Back at the school, CEIBS alumnus and school career development consultant Jeff Pi addresses the recent abrupt fall in China's
stock market, and urges boot campers to look beyond specific events to «overall megatrends» in the country.
And
at some point, that
stock is bound to go
back up.
Back then retailers didn't believe anyone played golf
at night, and wouldn't
stock the ball.
To short biotech
stocks, Shkreli would have had to borrow shares in biotech companies, sell them, and ideally buy them
back and return them
at a lower price in order to pocket the difference.
By buying
back $ 50 billion in
stock at high prices, thus diminishing its balance sheet just as its competitors were bulging with cash.
«Here's a
stock that has corrected right
back to the uptrend support line off of the late 2012 lows... [this] has been a good indication to us that perhaps momentum to the downside is fading and this is where we want to be buying the
stock so we would be a buyer of Merck
at these levels,» Johnson said Thursday on CNBC's «Trading Nation.»
Cramer started recommending NPS
back in October 2012, when the
stock was trading
at $ 8.24.
Looking
at individual
stocks, RBS reported a large earnings beat on Friday morning with the U.K. lender highlighting that it had swung
back to a first - half profit for the first time in three years.
«Rather than investing in new equipment and structures, businesses have used their cash positions to buy
back stock or to grow through acquisitions,» says Aneta Markowska, chief U.S. economist
at Société Générale.
Mortgage rates pulled
back slightly
at the start of this week, after the wild freefall in the
stock market sent investors
back to the bond market.
«I would not just rush in to buy these
stocks on the
back of the weekend's agreement,» said Francois Savary, chief investment officer
at investment management firm Prime Partners.
At issue: the IRS's claim that Redstone owed $ 737,625 in unpaid gift taxes, dating
back to his 1972 transfer of
stock in National Amusements, his family's private holding company, into trusts for his two children.
Executives
at dozens of tech companies received
back - dated
stock options to take advantage of lower exercise prices.
Fitbit's
stock hit an all - time low of $ 4.67 after the fourth quarter report, though it has since bounced
back a bit to close
at $ 5.31 on Monday.
The publicly - traded owner of MoviePass is raising more
backing, but
at a big discount to its
stock price.