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RE: Is The Market Riding One Last "Sugar High?"
I've always found it interesting that a company would approve buying their own stock at a high price, when they wouldn't but someone else's stock at a similarly high price. Wait until the price is low and then buy back so you are making a profit on your own stock. Then your other shares will be worth even more.
I don't understand this desire to get more debt. Yes, maybe you're expanding, but why continue to have so much debt on the balance sheet when you could be debt-free and then grow with no debt holding you back. The growth might be slower for a little while, but it will also be easier to maintain when times are tough.
Just my personal thoughts. Not advice on how to run a business or how to buy stocks.
Yes, and a chunk of companies went into debt for the sole reason to buyback more shares.
Las Vegas Sands recently took out more debt, $1.35 Billion, to buyback shares at a high. At this late cycle, I called it foolish. Casino stocks are the hardest hit in a recession.
Brilliant! And they wonder why they're broke. I've never really liked the idea of buybacks unless the stock was at a low. A buyback should signal that the company is forecasting actual growth, not just growth in earnings per share.