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You don't know how buybacks work do you?
by nathancahill 11y ago
You don't know how buybacks work do you?
- noir-york 11y agoBuybacks decrease outstanding shares, and increase earnings per share, which drives up share price. But its not a great way to increase EPS, as opposed to increasing EPS via operational means.
- bduerst 11y agoIf you know EPS is a terrible price inflation tactic, why did you automatically assume it's Apple's motive and gripe about it? If the market price is lower than intrinsic value, then the buyback is a good idea.
- anjc 11y agoExplain then. I don't think he said anything incorrect.
- nathancahill 11y ago> it's expensive.. It's not expensive, their cash stockpile is simply being invested in their own company. > ..propping up the share price to keep Wall Street happy Apple isn't worried about Wall St, they've always made that clear in their earnings calls.