Originally Posted by
BenderRodriguez
$5B in stock buybacks is 13% of the current market cap. All things are not equal in that because a stock buy back is mostly psychological, but in terms of pure static dollars it should increase the value of the underlying by 13%.
Stock options anyone?
While a stock buy back may be psychological, it isn't smart. However, if the goal is to flush money down the toilet to avoid some sort of bone picking leveraged takeover it might make some element of sense.
I hold 30k shares of DAL. I still don't think it is smart.