Originally Posted by
BenderRodriguez
I'm not saying they are a good expenditure. Never said that. All I am saying is that the perception that it enriches the executives is minimal at best because with the amount of stock we have outstanding, it won't move the needle enough to "enrich" anybody. They already invest 1/4 of the profits in the employees, pretty hard to justify doing a bigger percentage than that from a business perspective. Do you disagree with that?
The investment theory is stock buy backs provide a floor where the stock price won't drop below. This only works as long as there is money to repurchase stock. If the underlying company is crap, it won't save it. Eventually, there has to be a point where they can't support it anymore.