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

To: E_K_S who wrote (57848)	8/21/2016 1:26:04 PM
From: Graham Osborn	Respond to of 78744

I don't think the buybacks make as big a difference as you may think. Companies are tending to buy back their shares at significantly (at least 2x) above intrinsic value, typically less that 10% of shares outstanding for the big companies I have seen. It may be more than that for some companies with multi-year programs but be sure to look at net buybacks in that case. So the per share effect is much smaller than the effect on tangible book. Companies are not being penalized by shareholders in this environment for surplus depletion as they should be, leading to the almost ridiculously low levels of tangible shareholder equity. EOM ;)