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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (8884)	9/3/2006 6:27:58 AM
From: elmatador	Respond to of 219648

Companies with huge cash reserves not knowing what to do it. Or not seeing anything worse the risk to invest. Korea: Companies Sit on Mountains of Cash Listed Firms’ Cash Holdings Reach 50 Trillion Won Amid Sluggish Investment Silicon Valley: With cash reserves on the rise as managers trim growth-related investments, dozens of name-brand companies now pop up on dealmakers' spreadsheets as LBO candidates. Need this capital to spread more evenly.

To: TobagoJack who wrote (8884)	9/3/2006 11:16:14 AM
From: Rarebird	Read Replies (2) \| Respond to of 219648

Corporate Buybacks are similar to motor tuneups for the car; they are primarily stock price maintenance programs. Corporate America has accumulated lots of Cash over the past year because they've foreseen a nasty recession coming. It'll likely take one company after another preannouncing an earnings shortfall (like in March/April 2000) before most LTBH (Long Term Buy & Hold) investors realize that the economy is already in a recession. Some traders already sense that the US economy may be in for a rough patch moving forward, but they primarily trade on technicals (and momentum) and mistakenly think the Fed can ultimately bail the US economy out of any trouble or crisis. After all, who wants to pay attention to valuations or fundamentals except bears and short sellers? What primarily matters in America is short term profit. I know that Bear Markets (and Crashes) begin with the realization that valuations are wrong. Investors/Traders then sell, causing massive portfolio losses and then economic slowdown and layoffs result. Here we are getting the economic slowdown and the beginning of the layoffs (such as Intel) coming first. Welcome to the Modern God of Finance (the Fed) Blessing America. Once the real estate market breaks (which it has begun to do), it will bring down the American consumer with it and create massive problems for the American Lending Institutions (to say the least), causing the Stock market to tank. Checkmate?