The Biggest Risk for Stocks: The moment share buybacks get slashed.
There are now many of them. Shoring up the balance sheet is the opposite of “shareholder friendly.” It’s “creditor friendly.”
Companies buying back their own shares has “consistently been the largest source of US equity demand.” Without them, “demand for shares would fall dramatically.” Too painful to even imagine.
The vengeance of share buybacks: buyback queen Apple plunges.
A big shift, at a cost of $3.8 billion – which it now has to borrow.
Lured by the siren song of a “buying opportunity” and a fat yield.
The myth of the “blackout period.” And the price of “unlocking value.”
“Don’t write any more blog posts to blame pensioners for the collapse of Sears Holding after you wasted $5.8 billion on share buybacks.”
Brick & Mortar Meltdown: Dog of the Dow on 3rd Day in the Dow.
Crash insurance with an expiration date. But its working while it lasts.