Originally Posted by
notEnuf
Borrowing $1B to accelerate stock buybacks this quarter. Borrowing for buybacks is a huge red flag. This has been a leading indicator of problems at other companies as the executives try to drive up stock price prior to poor performance news or other issues. However, guidance remains the same...hmmm. This could be an opportunistic move on lower stock price but if they don't pay the loan back by the end of the year as stated it gives me pause. Something to watch.
Seems to me they are actually trying to buy the stock at a lower price........which would be a nice change.
If they really want to return value to shareholders you would think they would put more emphasis on dividends. I guess they are reluctant to raise dividends too much knowing what a disaster it is if they were to ever lower them.
Last time I checked we had way more shares outstanding then UAL and AMR is this still the case?
Scoop