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

To: TimF who wrote (33680)	9/8/2017 3:53:50 PM
From: zzpat	Read Replies (1) \| Respond to of 364306

I'm looking at this from a different perspective. A stock buyback decreases the number of shares available for sale. Lower supply should increase the price. If the price goes down (supply and demand) it's a failure. I accept there are limits to looking at it this way and it's only one tool. It takes a few seconds to do this and then I get to decide what I'm seeing....knowing the limitations (all things are never equal). Here's what I think is going to happen. Companies that had high stock buybacks and end up not competing (top and bottom lines are falling) will be obliterated by investors. The same analysts who called for more buybacks will be demanding higher returns when buybacks stop and when those returns don't happen the CEO is toast. Needless to say, the reason this is important to me is to catch those companies that have a flawed business model, flawed CEO, or are simply not innovating. Even a declining market cap (historical) is enough for me to say "no" most of the time. Add to it stock buybacks (stock price declining after supply falls) and I can't think of a good reason to buy the stock.