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Many great companies have purchased their own stock when it has become cheap. A stock buyback often signals that a company thinks that the best investment there
by nessus42 13y ago
Many great companies have purchased their own stock when it has become cheap. A stock buyback often signals that a company thinks that the best investment there is for its cash is its own stock.
- outside1234 13y agoThat's what they want you to think but the data doesn't support this. Its usually used to offset stock compensation.
- nessus42 13y agoCertainly companies may often do things for appearance, rather than for the right reasons, but both Warren Buffet and Peter Lynch have written that one of the best things that a corporation can do with its excess cash is to buy back its own stock when the company is undervalued in the market.