Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: - with a K who wrote (26063)	2/17/2007 10:56:45 AM
From: E_K_S	Respond to of 78748

Hi - with a K I was looking at CMI instead of CAT a few months back as it seemed like a better value proposition. finance.yahoo.com Both stocks tend to have a similar growth story over the last five years. However, CMI has moved up 25% since DEC-JAN and I missed my entry point of $117. Perhaps CAT's next move is higher as it has been lagging CMI since July of last year. Both companies have excellent global exposure but IMHO it may be the wrong time to buy any shares at this point in the cycle. EKS

To: - with a K who wrote (26063)	2/25/2007 12:09:47 PM
From: Rarebird	Respond to of 78748

>>By reducing the number of shares outstanding, stock buybacks automatically raise the value of the remaining shares and are usually popular with investors.<< Funds which could have been used to invest in new and better capital equipment are instead being used for stock buy-backs. Funds which could have been used to pay down corporate debts and improve the balance sheet and the debt/equity gearing are instead being used for stock buy-backs. Funds that could have been used to increase dividends as a reward to loyal stock holders are spent on stock buy-backs. To be sure, stock buy-backs provide a price-support mechanism for the US Stock market.