Why I Hate Stock Buy Backs

in SteemLeo5 years ago

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The quick and dirty version: When a company completes a buy back, it's exchange capital for sentiment. And that can go very badly.


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I agree with you @mealmcspadden.

To me, regular stock buybacks show a company that lacks innovation. Too many companies are "investing" their money into stock buybacks as opposed to those parts of their business which could provide future revenues.

Without innovation, the company is likely close to hitting a wall and going through the motions of financial gaming of the stock. Eventually, it all catches up to them.

Posted via Steemleo

Yeah, when companies prefer financial engineering over making the business actually make more money, it's just a matter of time.