|
OT - buybacks
OT - buybacks - I think (perhaps it was both lt cap and
Jester's) prediction that the tax cut would tend to buoy stock
prices through buybacks seems to be in play. Abbvie (symbol ABBV),
a pharmaceutical company, has nearly doubled in the past year, and
today announced a $10 bln buyback pgm, and raised the dividend from
.71 cents to .96 cents. They've had a lot of success with their
drugs, but this announcement produced enough of a reaction that
trading was halted for a bit. If buybacks with tax-free money
supports the market prices, fine with me. The reversion to the mean
valuations has to happen someday, but I have no problem with
delays.
|
|
$171BN in buybacks announced YTD, which is the most so far at
this time of the year, 22% higher than last year, and more than
double the 10-year average. Companies putting those unfunded tax
cuts exactly where many of us expected: buybacks, dividends, more
profits for execs, and crumbs to the workers with many receiving
one-time bonuses as low as $200 (the $1K many companies have
boasted about is for their longest tenured workers only).
zerohedge.com/ne...-2009s
|
|
Author:
|
Jester
Debunker
|
|
Subject:
|
Off Topic
|
|
Sentiment:
|
Neutral
|
|
Date:
|
02/17/18 at 11:38 AM CST
|
|
0
0
