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

To: Dan Meleney who wrote (48394)	6/21/2012 10:34:41 AM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78462

I agree with your first two statements. However: Even with years of good earnings, net tangible assets are still negative. This is mostly due to the share buybacks. This may not be intuitive for some investors, but buying back shares lowers book value. This is one of the reasons why book value or growth in book value is not necessarily a very good indicator of value for companies that buy back a lot of shares. Now TPX bought back some shares at inflated values, which is bad. However, in general, you can't blame a company for negative tangible assets if they buy back shares prudently. :)