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Originally Posted by tsquare
(Post 1173026)
A stock buy back makes the remaining outstanding shares worth more. For example.. Let's say you have 100 shares that represent 50% of the outstanding shares of a company. That would mean that there are 200 shares outstanding. If the company buys back 50 shares, your shares are now worth 67% of the company. If the company is earning $2000 or (EPS of $10/share) prior to the buyback, the earnings on your shares are now higher ($13.33) because the share pool has been reduced. Your stake in the company is now worth much much more. Warren Buffett 101. Value investing. He LOVES stock buybacks of companies he owns.
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Originally Posted by tsquare
(Post 1173082)
Well.. I think that is a little myopic, but if the vent makes you feel better, then go for it.
It's not myopic, it's ancient history... But come on, you can't honestly discuss stock buyback without mentioning that little gem... it never gets old! |
Originally Posted by tsquare
(Post 1173081)
It will be well before 2015. And I think there is lots of stuff to focus on. While the AMR stuff is interesting, it has nothing directly to do with us. Besides, they have their own threads for that stuff... *sigh* I guess this one is just getting a little more boring as time goes on..
If the new American pilots are being offered Delta +3% initially then whatever we get in 2 years, the AMR stuff is very pertinent to us. If the RUMOR is true and that's the offer, I wonder how we have been suckered into believing that we can and should only expect a small raise when Delta has been making money hands over fists compared to American and US Airways. If their merger goes through, maybe can see what a real imaginative pilot group comes up with for merely agreeing to a merger as opposed to what we get for actually implementing one successfully. |
Originally Posted by forgot to bid
(Post 1173036)
i hate to say it, binding arbitration should be
binding... until its a windfall. And I'll let the court figure that one out. But the SLI doesnt just happen until the court rules (again) right? USAPA is history and USAir can get on with things. Both benefit from more revenue and a larger network and much of the consolidation/shrinkage can come out of regionals (not including their final growth spurt in the 88 seat market if the APA is dumb enough to fall for that). Ironically Parker needs another large merger to finally close the book on the last medium sized merger. Call their bluff on scope (they won't not merge over 88 seaters, which have no reason to be at a low baller anyway). I'm sure there will be another round of "DOH gold standard" lawsuits but they will be poorly funded and crushed in the courts as the new SLI is forced upon all with ease. |
Originally Posted by newKnow
(Post 1173092)
If the new American pilots are being offered Delta +3% initially then whatever we get in 2 years, the AMR stuff is very pertinent to us. If the RUMOR is true and that's the offer, I wonder how we have been suckered into believing that we can and should only expect a small raise when Delta has been making money hands over fists compared to American and US Airways. If their merger goes through, maybe can see what a real imaginative pilot group comes up with for merely agreeing to a merger as opposed to what we get for actually implementing one successfully. The DALPA NC just collectively crapped their pants. And just think of the excuse our NC can give management: giving us a larger raise will actually HURT the competition even worse. Works for me. No excuses. |
Originally Posted by tsquare
(Post 1173026)
A stock buy back makes the remaining outstanding shares worth more. For example.. Let's say you have 100 shares that represent 50% of the outstanding shares of a company. That would mean that there are 200 shares outstanding. If the company buys back 50 shares, your shares are now worth 67% of the company. If the company is earning $2000 or (EPS of $10/share) prior to the buyback, the earnings on your shares are now higher ($13.33) because the share pool has been reduced. Your stake in the company is now worth much much more. Warren Buffett 101. Value investing. He LOVES stock buybacks of companies he owns.
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Originally Posted by Bill Lumberg
(Post 1173096)
The DALPA NC just collectively crapped their pants. And just think of the excuse our NC can give management: giving us a larger raise will actually HURT the competition even worse. Works for me. No excuses.
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If the stock was "fairly valued", a buyback will be a wash for the remaining stockholders. Each now owns a greater percentage of a company that is now "worth" less (because of what they had to spend buying back the other shares). Stock buybacks do make sense when Management thinks the stock is undervalued.
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Originally Posted by tomgoodman
(Post 1173111)
If the stock was "fairly valued", a buyback will be a wash for the remaining stockholders. Each now owns a greater percentage of a company that is now "worth" less (because of what they had to spend buying back the other shares). Stock buybacks do make sense when Management thinks the stock is undervalued.
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Originally Posted by newKnow
(Post 1173102)
I like it. "No Excuses." :D
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