10 companies buying their own stock
Already this year, U.S. companies have announced plans to snap up more than $210 million worth of their own shares, which usually means higher stock prices. Here are the 10 biggest buybacks so far.
Companies are buying back so much stock because they think their shares are underpriced.
You can do well buying the shares of buyback leaders, as long as the stocks aren't overpriced
What's in it for you?
Could it be more manipulation by your account handlers, or could it be Fed Policy keeping the market afloat with an injected bubble of cheap low interest borrow between buddy Bank but-holes? The little guy or gal investor takes it in the hinny which ever way the market blows. Buyer beware, somewhere down the road (at the Fed's beckoning wishes) the market is due for a correction, but in the meantime, pull up a chair and count the chips!
You can not buy back shares or issue dividend unless you have retained earnings.
Retained earnings means that over the lifetime of your company you have a + operating profit. This means the company has made money. So if a company is buying shares or issuing dividends it means they are using their profits to give to the shareholders, either buy increasing the price of the existing shares by buying and creating demand for the shares or buy directly giving the profits to the shareholders. It is a sign of a healthy company and if you look at the list of companies on this article you will notice these are some of the most profitable companies out there.
Yeah, and some people (corporations are too), like to smell their own f**ts.
Don't read too much into this.
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