PAL, Ah, no wonder con men make so much money. Share buybacks are not a scam, especially if done at major bottoms. If done honestly, they are even o.k. at tops, though they are lousy investments of shareholder capital.
I still cannot believe that you make that kind of statement: "lousy investments of shareholder capital". Lousy as compared to what? If you invest in Dell, you are looking at growth and capital appreciation. If you invest in utility, you are looking at steady income. Thus, it depends upon your choice of style of investment. But unequivocally stating that share buy back is a lousy investment is puzzling.
As for the scam of buy backs and using it for employee's incentives, you can debate until your face turns blue. There are of course dishonesty amongst companies, but I for one trust companies like Dell, Home Depot, IBM, etc which give incentives to the employees, not just top management. Who are we to judge if Michael Eisner gets that multimillion dollar bonus from Disney, or that Lee Iacocca becomes so rich from Chrysler stocks after resurrecting from near bankcruptcy?
Paul.
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