Originally Posted by
El10
Our vacation is not same as bankruptcy when you take in account the interaction of add pay and mpg in a vacation month.
Along with all the creditors, stockholders lost also in bankruptcy. As much as you wish they did not do what every other healthy company does and return capital back to its owners they will.
You are forgetting, WE WERE 65% of the stockholders in bankruptcy. We lost twice.
Share buybacks are sold as "returning capital to shareholders". Unfortunately, it is BS. It artificially increases demand for shares, which (they hope) drives up share prices, which benefits shareholders, and especially, their own stock option positions.
Buying shares is "investing". You should buy low and sell high. Share buybacks are almost done at historically high share prices, to attempt to drive the price higher. They are using corporate funds to try to enhance their own investing position. If UAL shares are a good deal at $56, why weren't they buying them when they were $10.
It is almost always a waste of corporate funds.