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Nothing moves the stock like a successful product. I am glad they did not bow to market pressure and announce more dividends or stock buybacks. Stock buybacks a
by yalogin 13y ago
Nothing moves the stock like a successful product. I am glad they did not bow to market pressure and announce more dividends or stock buybacks. Stock buybacks are just dead money. They should instead use that money on their business and not to satisfy investors over the short term.
- ChikkaChiChi 13y agoCarl Icahn does not a market represent. Carl Icahn and his Twitter account represent himself (and potentially a growing disconnect with reality since his CompUSA days)
- adamlett 13y ago> Stock buybacks are just dead money That is an oversimplification. Apple has more money than it could possibly hope to reinvest in its core business. When that is the case, and when the stock is undervalued as is the case with Apple, stock buybacks are a great use of a company's cash.
- yalogin 13y agoThe point behind stock buyback is simply to assert some confidence in the stock. Which means the market does not have confidence in it in the first place and probably has negative momentum. Most cases I have seen the market is correct. So even if the stock is bought back the increase in the price will be temporary as the negative momentum will surely vaporize the stock increase. It does not help anybody but investors trying to make a profit in the short term. I have not seen a single stock buyback work. I would rather they throw money at anything but this.
- adamlett 13y ago> I have not seen a single stock buyback work I haven't seen a single penguin in the wild, but that doesn't mean they don't exist ;) Berkeshire Hathaway and Teledyne are two companies I know off that have had great success with stock buybacks. Read this http://observer.com/2003/04/the-brain-behind-teledyne-a-great-american-capitalist/ http://observer.com/2003/04/the-brain-behind-teledyne-a-grea... for a fascinating account of Teledyne's story.