Breaking records...

transporter

Well-Known Member
https://www.barrons.com/articles/why-the-buyback-boom-is-bullish-for-investors-1526089472

Standard & Poor’s 500 companies are on track to announce $650 billion worth of buybacks this year, according to a Goldman Sachs estimate, smashing the previous record of $589 billion set in 2007.

Golly gee whiz...where did companies get all that money to buy back their own stock? Any ideas????

And for the economically and intellectually challenged like Gilligan there is this item:

Mindful of the political criticism of buybacks as a gift to wealthy shareholders, Apple has emphasized that it plans $30 billion of domestic capital expenditures in the next five years, as well, and will create some 20,000 U.S. jobs.

But it isn’t letting up on buybacks. The company won’t say how much it plans to repurchase in the coming quarters, other than it aims to move at a “fast pace.”

Analysts expect Apple to buy back $70 billion to $80 billion of stock annually in the next few years.

So Gilligan...that is $6B of capex per year vs $70-$80B of share buybacks...or share buybacks are 12-13 times larger than capex. Now if the US economy slows back down to its more natural rate, as is expected in 2019 after the frontloaded tax cut and spending stimulus wears off, what do you think will happen to that capex number?
 

Gilligan

#*! boat!
PREMO Member
https://www.barrons.com/articles/why-the-buyback-boom-is-bullish-for-investors-1526089472



Golly gee whiz...where did companies get all that money to buy back their own stock? Any ideas????

And for the economically and intellectually challenged like Gilligan there is this item:



So Gilligan...that is $6B of capex per year vs $70-$80B of share buybacks...or share buybacks are 12-13 times larger than capex. Now if the US economy slows back down to its more natural rate, as is expected in 2019 after the frontloaded tax cut and spending stimulus wears off, what do you think will happen to that capex number?

:yawn:
 

Rommey

Well-Known Member
Now if the US economy slows back down to its more natural rate, as is expected in 2019 after the frontloaded tax cut and spending stimulus wears off, what do you think will happen to that capex number?
Probably nothing... According to CNBC, Apple has cash reserves of $285B as of Dec 2017, so $6B/yr (or $30B in one lump sum) is barely a blip in their financial picture.

Additionally:
Apple has said it plans to make $38 billion in tax payments to reflect new tax rules passed last year. Wall Street has speculated that the lower tax rates may open the door for the tech giant to bring back cash from overseas and put it to work through acquisitions or by returning money to shareholders.

Apple has already revealed some spending goals: The iPhone maker says it will contribute $350 billion to the U.S. economy over the next five years, in the form of payments to suppliers, capital expenditures, advanced manufacturing investments and jobs.
link

Apple is paying taxes, investing in their company, and adding $$ to the economy. How exactly is this a problem or somehow a bad thing?
 

SamSpade

Well-Known Member
Of course, the Democratic answer to this is - raise the taxes back up!
Yep - that'll solve it.
 

Monello

Smarter than the average bear
PREMO Member
Heresy!!!

Blasphemy!!!

Infidel!!!

Imagine a 10% cut on everything government. Budgets, contracts, salaries, entitlements, foreign aid. It's a start. Everyone affected would adjust just like when gas prices go up.
 

Merlin99

Visualize whirled peas
PREMO Member
https://www.barrons.com/articles/why-the-buyback-boom-is-bullish-for-investors-1526089472



Golly gee whiz...where did companies get all that money to buy back their own stock? Any ideas????

And for the economically and intellectually challenged like Gilligan there is this item:



So Gilligan...that is $6B of capex per year vs $70-$80B of share buybacks...or share buybacks are 12-13 times larger than capex. Now if the US economy slows back down to its more natural rate, as is expected in 2019 after the frontloaded tax cut and spending stimulus wears off, what do you think will happen to that capex number?

Why is a company buying back their own stock bad? You guys keep saying it like it’s a bad thing, but to me it sounds like a great way to keep control of your own destiny.
 

Monello

Smarter than the average bear
PREMO Member
Why is a company buying back their own stock bad? You guys keep saying it like it’s a bad thing, but to me it sounds like a great way to keep control of your own destiny.

Because...... Trump.
 

nutz

Well-Known Member
https://www.barrons.com/articles/why-the-buyback-boom-is-bullish-for-investors-1526089472



Golly gee whiz...where did companies get all that money to buy back their own stock? Any ideas????

And for the economically and intellectually challenged like Gilligan there is this item:



So Gilligan...that is $6B of capex per year vs $70-$80B of share buybacks...or share buybacks are 12-13 times larger than capex. Now if the US economy slows back down to its more natural rate, as is expected in 2019 after the frontloaded tax cut and spending stimulus wears off, what do you think will happen to that capex number?

Pick on something not on your agenda. What about OPEX?
 
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