Originally Posted by
Carl Spackler
You might be old, but you haven't lost your readers. Both you and Timbo are spot on. Stock buybacks do only one thing, and that is to provide a floor to the stock price to ensure corporate officer stock options remain above the exercise price until they can be profitably sold by management. There is NO other reason for them.
Carl
That's exactly right; If a company is highly profitable at lower than average P/E, it's the executives seeking a payoff.