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Old 05-11-2007 | 10:18 AM
  #24  
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C152driver
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From: Bug Smasher Captain, CFI
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Originally Posted by fosters
Mesa didn't really "lose" $25 mil, it's just how they had accounting run the numbers. All done to weaken the unions position as they enter negotiations.

Notice the point about Mesa buying back shares? Companies generally only do this for one reason - they think their share price (and resulting market cap) is below current market value.
Well, it's also the current favorite tactic that companies are using to make their earnings look better than they actually are. EPS always looks better if there are fewer shares. With rates the way they are right now, they could potentially borrow to buy the shares still get a pretty good return on it, assuming their business doesnt tank. There is a reasonably good chance that JO could go laughing to bank on this...
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