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Thanks TDL.
'All the above could/should/shall happen for companies to show YoY EPS growth given the strong dollar and the middling ground that the economy is still in.'
So they could be buying back to manipulate their numbers to show growth? I don't believe this but I'm just asking.
Thanks TDL.
'All the above could/should/shall happen for companies to show YoY EPS growth given the strong dollar and the middling ground that the economy is still in.'
So they could be buying back to manipulate their numbers to show growth? I don't believe this but I'm just asking.
When companies buyback shares analyst will adjust eps to account for it. The company isn't fooling wall st when they buy back half their shares and eps double
When companies buyback shares analyst will adjust eps to account for it. The company isn't fooling wall st when they buy back half their shares and eps double
Yup, true but if an investor buys on the news without doing due diligence as to whether the buyback is initiated when the stock is undervalued then they could get burnt in the long term.
Yup, true but if an investor buys on the news without doing due diligence as to whether the buyback is initiated when the stock is undervalued then they could get burnt in the long term.
Buying without due diligence is a problem no matter what you are talking about so the buyback topic isn't the problem
Just because a company buys back shares doesn't mean it is manipulating the marketplace, it means they are doing things legally under the SEC. They can dilute the marketplace, sell off more shares to try and get volume up, without moving the price much, this usually ends up driving the price down, however, they don't care because they are interested in gaining overall volume. After the increased volume, some PR, and perhaps good 10k they can buy back some shares to reduce the float and increase the volatility now that volume has picked up, IPOs do this all the time. The reason a company goes IPO is to raise funds and you can't do that without volume, it's just one way to increase the volume and the companies revenue stream, which is all perfectly legal. It's essentially a way to market yourself on the open market.
Once the market is diluted it is scalpers paradise, and vice versa when shares are bought back, I personally can't stand scalpers, to me they are just a bunch of emotional tight-wads that never let a good thing happen, but I'll keep the rest to myself (as most scalpers are hedge funds, investment bankers, etc.).
Sounds like the standard brainwashing bs from the greedy finance company to take your money. It is like asking the Chiropractor if it is better to leave your spine along or for him to crack it monthly. What would you guess his answer be?
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happen for companies to show YoY EPS growth given the strong dollar and the middling ground that the economy is still in.'
