Originally Posted by
tsquare
And a $500 million stock buyback with the stock at even $30 will make how much difference in the stock price? Be sure to factor in that we have around 850 million shares outstanding.... This stock buyback is about something else, and it is nothing nefarious. Personally I think it makes way more sense to use that $500 mil to pay down debt. THe ROI is much much better, but I totally understand their logic in buying stock.
Has anyone watched the series House of Lies"? This is a page out of the House of Lies consulting handbook. It has no benefit to the corporation. It only benefits the consultants and shareholders with maturing stock options. Stock buybacks are ripoffs. Notice they didn't buy anything back when it was trading for $4.00 a share. Stock buybacks only serve to temporarily artificially inflate the stock price. In many cases, stock buybacks hurt the company.