Companies perform stock buy backs when they don't have any ideas in how to invest their cash. A recent example is an Australian company called "CSL". A year or

Companies perform stock buy backs when they don't have any ideas in how to invest their cash. A recent example is an Australian company called "CSL". A year or so ago it held a massive share raising and was proposing to use the cash to buy out a US pharmaceutical firm. The US regulator thought it would give CSL too much market power and stopped the deal from happening. What CSL did was initiate a stock buy back to return the cash to investors. Link: http://www.theaustralian.com.au/business/wealth/upside-for-csl-investors-share-buyback/story-e6frgacx-1225715690408 http://www.theaustralian.com.au/business/wealth/upside-for-c... It's not necessarily not good.