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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (33567)9/7/2017 10:12:18 PM
From: zzpat1 Recommendation

Recommended By
Katelew

  Read Replies (1) | Respond to of 364282
 
We can test if a buyback is working right? All we have to do is look at the historical market cap of the company. If the buyback is raising the price of the stock and the market cap then it may be doing some good.

However, if the stock is falling or if the market cap is falling the buyback wasted money.

Now let's do the test.

Wall Mart began a $20 billion stock buyback in 2015.

MarketWatch

Did the buyback raise the market cap?

Macrotrends

As you can see the stock was pummeled during this time. The buyback failed.
Testing stocks in this manner take a few seconds. Needless to say, there are countless other things going on but it's a valuable tool to see if the CEO is pandering to investors or trying to protect investors from his failed policies.