Stock Buybacks Are Banned; Let It Be A Trend

Stock buybacks continue to be a fever dream, driving up share prices, undermining innovation that drives real economic expansion.

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A robust private sector borrows heavily to build, to invest in new creative capacity, not to repurchase its own stock. Stock buybacks are banned let it be a News Stock Buybacks Are Banned; Let It Be A TrendForbes13 hours agoStock buybacks continue to be a fever dream, driving up share prices, undermining innovation that drives real economic expansion. Either a company needs loans to invest in productive expansion, or it issues more stock for the same reason: to raise cash needed for that expansion. Stock Buybacks Are Banned; Let It Be A Trend buybacks continue to be a fever dream, driving up share prices, undermining innovation that drives real economic expansion. ... Stock Buybacks Are Banned; Let It Be A Trend. Hay claims, sensibly, that this is keeping stock prices level in those places where the system is working as it should, where stock is issued to help a company grow and compete in new or larger markets. Videos for Stock Buybacks Are Banned Let It Be A 1:01You know what to do folks. Let's share... - The Canadian Gun Vault Inc.Facebook In those cases, when you issue more stock, you dilute the share price: the value of the company gets spread, in smaller increments, over more and more shares. 13:22Stock Buybacks Pushed the Stock Market To All Time Highs! Will They Be ILLEGAL Soon?YouTube In developing countries this is what’s been happening.

Publisher: Forbes
Date: 2020-05-13
Author: Peter Georgescu
Twitter: @forbes
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While you’re here, how about this:

‘Bye bye buybacks’: These stocks are likely to be hurt the most as repurchase trend ends

Buybacks have historically been a great way to boost stock prices and return value to shareholders, but the coronavirus crisis may have wiped out the hot trend.

As Congress lends help to some publicly traded companies,’critics want those corporations to be banned’from conducting stock buybacks. 2:45Last day for Washington bump stock buy-back program, federal ban goes into effect TuesdayYouTube Regardless of mandates about the matter, Jefferies said share repurchases will slow going forward, as businesses have less cash on hand from the halt to the economy.’

“Bye bye buybacks for quite some time,” Jefferies equity strategist Steven DeSanctis said in a note to clients. “The frenzy around the outrage over buybacks has calmed down, but we don’t believe companies will be talking about it anytime soon.”‘

Publisher: CNBC
Date: 2020-04-23T18:18:45+0000
Author: Author link
Twitter: @CNBC
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Coronavirus may have ended the buyback boom

Democratic presidential candidate Joe Biden recently called on ‘every CEO in America to publicly commit now to not buying back their company’s stock over the course of the next year’. Photograph: via Getty

It had been thought 2020 might see new records being broken but Goldman Sachs now estimates that buyback activity will roughly halve to $371 billion. Goldman itself has paused buybacks, as have many of America’s biggest banks ‘ including JPMorgan, Bank of America, Citigroup, and Wells Fargo.

Outside the US, similar moves have been announced by a host of names in under-pressure sectors such as oil (including Royal Dutch Shell, France’s Total and Norway’s Equinor) and airlines (Ryanair, Qantas and Deutsche Lufthansa, among others).

Publisher: The Irish Times
Date: 2020-04-21T05:15:00+0100
Twitter: @IrishTimesBiz
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Corporate Buybacks, A Scam Going Unnoticed?

With the second monumental bailout of wealthy corporations in a little over a decade, the public is beginning to discover both the shabby reality and the hyperreal absurdity of a financial practice termed ‘stock buybacks.’ It sounds innocent, as if it described a process by which conscientious entrepreneurs are seeking to optimize their capacity to focus with as little distraction as possible on their personal vision for developing their enterprise.

The reality is very different, as The New York Times‘explains: ‘By repurchasing stock, a company reduces the number of shares in the open market. The reduced supply of shares tends to push prices up.’ It’s about appearances rather than economic reality. Companies are traditionally expected to use the cash they have available to build their business, support their workforce or improve their products. Stock buybacks diminish their capacity to do any of these things. Instead, they allow the management team to inflate the price of their shares while draining the company of its cash.

Publisher: Qrius
Date: 2020-04-16T12:28:52+00:00
Twitter: @theqrius
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Coronavirus fallout: Retiree-investors, pensioners hit as RBI bans dividend payment by banks

In a surprise move, the Reserve Bank of India (RBI) today suspended the dividend payouts by public, private and foreign banks to its shareholders, which is going to affect retiree-investors and pensioners. The central bank has given a justification that the dividend suspension has been done to conserve the banks’ capital to support the economy and create a cushion for absorbing any future losses.

But shouldn’t it be left to bank boards and managements to decide based on their profitability and balance sheet strengths? There are some private banks like HDFC Bank or Kotak Bank, which are running their houses efficiently and prudently. They are meeting all regulatory requirements or obligations, including the stringent priority sector regulations and making handsome profits for their shareholders.

Date: 2020-04-17T21:38:00+05:30
Twitter: @BT_India
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6 Stocks to Buy and Hold (And 6 Picks to Avoid)

Nothing feeds fear in the stock market like uncertainty, and nothing spreads fear and uncertainty like a global pandemic. As coronavirus worries infected the financial markets, stocks tumbled at a record pace. Standard & Poor’s 500-stock index dropped 34% from its all-time high in about a month. During the Great Recession, it took nearly a year for the index to decline by that amount. A near-total economic shutdown in the country’s biggest cities compounded the damage. ‘These are unprecedented times,’ says Philip Lawlor, managing director, global markets research at FTSE Russell.

Date: C204E96E4F07E7367B1370285CE0AAA7
Twitter: @kiplinger
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