Share buybacks are back above pre-COVID levels. Frequent readers of these pages know that we are generally not in favor of share buybacks. Buyback activity has exploded since 2009 when the Fed began its low interest rate and QE monetary policy to artificially prop up equity and credit markets during the financial crisis. Public companies … Continue reading Share Buybacks Accelerate
Tag: share repurchases
One news item that caught our eye this week was that the Office of the Comptroller of the Currency (a division of Treasury) wants banks to extend credit to those who lack credit history. Banks plan to share some consumer data with each other in order to build enough history to justify extending credit. Smells … Continue reading Treasury Wants More Consumer Spending
Over the past 11 months and as recently as Tuesday the Federal Reserve has consistently reiterated its mission to get the U.S. Economy back to full employment. We are not there yet. The labor participation rate remains below 2008-2009 financial crisis levels. Let me know your thoughts on the below (particularly if you are on … Continue reading Is The Fed’s View On The Relationship Between Interest Rates and Jobs Wrong?
We prefer dividends, investment in R&D and M&A programs to share repurchases. However, for those companies that include share repurchases as part of their capital allocation strategy, today would be a good day to exercise a portion of that repurchase authorization. Markets hate uncertainty. Markets like it when companies and insiders step-up and buy their … Continue reading Now Would Be A Good Time To Execute That Stock Buyback
It is a corporate governance problem when insiders sell shares in the face of share repurchase programs. Take the example of Copart (ticker: CPRT). CPRT insiders have not purchased any shares over the past several years, yet they have done plenty of selling. Further, CPRT share repurchases helped support the stock while insiders sold (see … Continue reading Insider Selling & Share Repurchases – A Corporate Governance Problem