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| Category: Stock Buybacks This category includes articles that deal with the corporate practice of repurchasing outstanding equity, usually for the purpose of manipulating stock prices upwards and often associated with the exercise of stock options by corporate executives. Corporate governance in 2005 By John Schroy, on March 16th, 2006 |  Leave a comment  Repurchases of company stock, mostly under the safe harbor exemption from market manipulation provided by SEC Rule 10b-18, set an all time record of $366 billion (net) in 2005. This was 260% of levels in 2004 and 880% of buybacks in 2002. Despite extremely aggressive tactics of corporate management to manipulate stock prices upwards and give value to option and bonus plans, stock prices rose only about 3% in 2005, on average. March 16th, 2006 | Print Article |  Email Article |  Topics: Corporate Governance, executive stock options, SEC Rule 10b-18, Stock Buybacks | Category: Stock Buybacks | Leave a comment |  Short urlFund management By John Schroy, on March 7th, 2006 | Leave a comment  Legg Mason, the giant asset management company that was recently sold off by Citigroup, issued a report on January 10, 2006 by Michael Mauboussin, Chief Investment Strategist, entitled, “Clear Thinking About Share Repurchases”. The general tenor of the Legg Mason commentary seems to be favorable towards buybacks, especially extremely large buybacks that are aggressively pursued and that, presumably, are more effective in jacking up stock prices and making investment managers look good. March 7th, 2006 | Print Article | Email Article | Topics: capital flow analysis, Citigroup, debt/equity ratio, dividends, executive stock options, intrinsic value, Legg Mason, market manipulation, mutual funds, Stock Buybacks | Category: Stock Buybacks | Leave a comment | Short url'Defined Benefit' Pension Plans By John Schroy, on February 26th, 2006 | Leave a comment  The sponsors of ‘defined benefits’ pension plans controlled, as of December 2004, about US $2.5 trillion in equities. Common stocks, even after the crash of 2000-2001, were substantially over-valued. In order for stock prices to reflect values that were customary before the advent of stock buybacks, prices would have to drop between 20% (earnings basis) and 50% (dividend yield basis). In the case of ‘defined benefits’ pension plans, this would represent a loss of between US$500 billion and US$1.2 trillion in market value of pension portfolios. February 26th, 2006 | Print Article | Email Article | Topics: Baby Boomers, capital flow analysis, defined benefit pensions, dividends, FASB, FASB Rule 132R, FASB Rule 151, mark-to-market, pension fund, pension plans, SEC Rule 10b-18, Total Returns, US SEC | Category: Stock Buybacks, featured | Leave a comment | Short urlFeatured articles on inside pages
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