SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 118.75-0.8%Jan 14 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JRI who wrote (61459)8/27/1998 12:53:00 PM
From: Lee  Read Replies (1) of 176387
 
John,..Re:I couldn't think of a reason why a company would do a stock buyback if they were looking to buy other firms (in the industry).

In the current market climate, most acquisitions today are done with stock. Even Warren did a stock transaction in his recent purchase of General Re. He has stated several times that the use of stock in transactions implies that the stock is overvalued relative to cash. So if a company normally does stock buy backs as standard practice, and finds itself in a market where asset prices are at the upper end of what's considered reasonable, then the use of stock for purchases makes a lot of sense.

Alternatively, if a company feels it's stock is undervalued relative to industry equivalents, then many times they will use cash rather than stock for the transaction.

Regards,

Lee
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News