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| Subject: Stock Buybacks In some countries, including the United States and the United Kingdom, corporations can buy back their own stock in a share repurchase, also known as a stock repurchase or share buyback. There has been a meteoric rise in the use of share repurchases in the U.S. in the past twenty years, from $5b in 1980 to $349b in 2005. A share repurchase distributes cash to existing shareholders in exchange for a fraction of the firm’s outstanding equity. That is, cash is exchanged for a reduction in the number of shares outstanding. The firm either retires the shares or keeps them as treasury stock, available for re-issuance. Under U.S. corporate law there are five primary methods of stock repurchase: open market, private negotiations, repurchase put rights, and two variants of self-tender repurchase, a fixed price tender offer and a Dutch auction. (Wikipedia Feb 2010) The top of the market By John Schroy, on April 29th, 2007 |  3 comments  Google has come out with a new service called Google Alerts that is a great tool for tracking the madness of the US equity market. Sign up and enter the words ’stock buybacks’ and each day your email will bring proof of the lack of market rationality. Googling for ’stock buybacks’ now brings information that suggests that the ‘Buyback Era’ may be drawing to an end. April 29th, 2007 | Print Article |  Email Article |  Topics: Enron, Google, Long Term Capital Management, Neil Cavuto, Stock Buybacks | Category: Stock Buybacks | 3 comments |  Short urlUS Equities By John Schroy, on February 10th, 2007 | 5 comments  Depending upon your point of view, the US stock market is either vastly over-priced, or a great bargain — and if you have a split personality, you could both be right! This peculiar state of affairs occurs because two radically different yardsticks can be applied in measuring corporate performance: one based on an unquestioning respect for Generally Accepted Accounting Principles, and the other based on commonsense, an appreciation for cash in hand, and the time-honored principle of, ‘What’s in it for me?’. February 10th, 2007 | Print Article | Email Article | Topics: Corporate Governance, dividends, EBITDA, executive stock options, GAAP, Graham & Dodd, index funds, price earnings ratios, Stock Buybacks | Category: Security Analysis | 5 comments | Short urlStockbrokers lose clout By John Schroy, on January 26th, 2007 | 2 comments  Securities exchanges are being transformed from “stockbrokers’ clubs” into profit-oriented companies selling services to customers. Long the ‘masters of the universe’, stockbrokers are expected to become less influential. Free from the constraints of small broker-dealers, demutualized exchanges are in the midst of rapid modernization and dramatic change. Computerized trading, book-entry settlement, central depositories, and cross-border exchanges are now the norm, not the exception. January 26th, 2007 | Print Article | Email Article | Topics: central securities depositories, China, demutualization, DVP, Euronext, Group of Thirty, IOSCO, NYSE, OMX Group, Richard Grasso, Sarbanes-Oxley Act, securities exchange, Soviet Union, Standard & Poor's, Stock Buybacks, Taiwan Stock Exchange, US SEC, USAID, World Bank | Category: World Economy | 2 comments | Short urlFeatured articles on inside pages
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