I neither like nor dislike buybacks, special dividends, and other
bits of financial engineering that extract limited value at a cost of increasing leverage.
This is the highest number since the recession and a potentially worrying sign for those who argue that buybacks are merely an empty
form of financial engineering meant to goose share prices and potentially reward executives.
And topline measures like sales are harder to fudge than bottom line measures like earnings; a
lot of financial engineering goes into «managing» earnings which makes them a less reliable measure.
The reported Dell - EMC (EMC) deal, one that neither company has confirmed, epitomizes the
sort of financial engineering that has inflamed older tech companies of late.
And Hudson's Bay, whose roots lie in real estate development, is well known for its creative
use of financial engineering tied to the property it owns.
Further,
elements of financial engineering, most notably the excessive use of corporate stock buy - back programs during a period of declining earnings, have detached many stock prices from their historic fundamentals.
Our
team of financial engineers led by Professor Steffan Mittnick, use quantitative finance to drive the investment decisions of our model based on current market data and empirical evidence.
If a stock falls to $ 0.90 and a company executes a 20 - for - 1 reverse split, the stock price will rise to $ 18 per share and remove the risk of delisting (though every 20 shares that the shareholders own will be reduced to a single share as a
result of this financial engineering device).
Sources: James A. Simons — lecture at International
Association of Financial Engineers annual conference 2006; as well as at MIT, 2010; Greenwich Roundtable Medallion Fund; Wikipedia.
So goes it in southern California:
lots of financial engineering and a press that has declined in quality and quantity each successive year, for now almost a decade.
To neutralize the environmental impact of this electricity, Palo Alto engages in a bit
of financial engineering.