Buybacks ( General News )

Re: Buybacks ( General News )

Postby winston » Thu Feb 22, 2018 6:39 am

This hidden factor may have exacerbated the recent stock selloff

By Ryan Vlastelica

The correction coincided with a ‘blackout’ period for stock buybacks

A “blackout” for stock buybacks refers to how most companies and insiders are prohibited from repurchasing their own shares in the month before the release of their quarterly results, removing a steady source of buying power from the markets.

The concentration of results during the multiweek span that comprises the earnings season means that four months—January, April, July, and October—see this impact the most.


Source: Market Watch

https://www.marketwatch.com/story/this- ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Fri Mar 02, 2018 8:25 pm

CEOs Are Doing One Thing Right Now That Should Worry Any Stock Market Bull

CEOs are full steam ahead with stock buybacks. Better hope the stock market doesn't take a nosedive.

By Brian Sozzi

S&P 500 companies have announced $250 billion in share repurchase authorizations the last three months, close to the 2015 peak, UBS strategist Keith Parker says.

Stock buyback announcements year to date, are nearly two times the post financial crisis average.

All in all, Parker sees $550 billion in net buybacks this year.


Source: The Street

https://www.thestreet.com/story/1450768 ... -bull.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Wed Jun 27, 2018 8:20 am

Share buybacks soar to record US$189.1b

Apple Inc set a record in the first quarter by spending roughly US$23 billion buying back shares.
Flush with savings from lower tax bills and profits from a growing economy, big U.S. companies are spending a record amount buying back their own stock.

Stock repurchases hit US$189.1 billion in the first quarter for the S&P 500, according to preliminary results from S&P Dow Jones Indices. That tops the prior record of US$171.9 billion set during the summer of 2007, just before the Great Recession struck.

The robust buying of their own shares continues a years long trend where companies have returned more and more cash to their investors through buybacks and dividends. S&P 500 companies returned a total of $1 trillion to their shareholders in the 12 months through March, the first time they passed that threshold.

Apple, Cisco Systems and other technology giants helped lead the way. Apple has traditionally been one of the biggest repurchasers of its own stock, and it set a record in the first quarter by spending roughly US$23 billion.

By buying their own stock, companies can limit the number of their shares available in the market, which in turn allows remaining shareholders to lay claim to a bigger proportion of profits. Critics, though, don’t like it when companies pay too high a price to repurchase their own shares, and the S&P 500 has quadrupled in value since hitting bottom in early 2009.

Some critics have also been pushing companies to spend more on investments and higher wages for workers, which would spur more economic activity, rather than returning it to shareholders. That has been happening more slowly than many had hoped, but things may be changing now that the unemployment rate is at an 18-year low.

"You saw a lot of money in the last several years go to stock buybacks and dividends, but with the unemployment market being as tight as it is, companies have to make investments to get more productive,” said Ann Miletti, a portfolio manager at Wells Fargo Asset Management.

Miletti expects companies to spend more on software and other products to get more efficient, which would lead to bigger profits for technology and industrial companies.

More than a third of small businesses say it’s a good time to expand, according to a survey by the National Federation of Independent Business. Wages have been trending a bit higher, meanwhile, even though they have not kept pace with corporate profits. Average hourly pay in the United States rose 2.7 percent in May from a year earlier.

Source: AP

http://www.thestandard.com.hk/breaking- ... 0626&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Tue Aug 07, 2018 9:01 pm

Record share buybacks may be a sign the end of the bull market is near: Strategist

U.S. companies are expected to buy back a record amount of shares this year, but that may not necessarily be good news for the market, says John Blank.

"This is the good news that is bad news."

by Michelle Fox

According to a Goldman Sachs analysis, corporate buybacks appear poised to reach the $1 trillion mark this year.

In fact, the last time there was a big surge in buybacks was in 2007, he pointed out. The financial crisis hit in 2008.

Blank sees a record profit margin that is going to be eroded thanks to rising labor, material and trucking costs. At the same time, the hurdles become higher for internal capital investment allocations.

Companies are bad at timing — right now they would be buying them at the highs, he said.
He'd prefer cash be returned to shareholders in the form of dividends.


Source: CNBC

https://www.cnbc.com/2018/08/06/record- ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Wed Aug 22, 2018 8:48 am

U.S. buyback announcements slow, but on track for $1 trillion: TrimTabs

by Sinéad Carew

Latest data showed the pace of new repurchase announcements slowing during the second-quarter reporting season.

The previous record for annual share repurchases was $809.6 billion in 2007.

In the latest reporting season U.S. companies announced an average of $3 billion in buybacks on a daily basis compared with the $3.5 billion a day average for the past eight earnings seasons.




Source: Reuters

https://www.reuters.com/article/us-usa- ... r%20Update
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Fri Sep 21, 2018 10:03 am

This Event Could Crash Every Investor’s Portfolio by October 5th

by TOM GENTILE

Major U.S. companies are nearing their “blackout” period – and that’s a huge deal – here’s why:

A “blackout period” is when most companies and corporate insiders are banned from repurchasing their own shares in the month before the company releases their quarterly results.

Currently, around 18% of companies in the S&P are currently in a blackout period. And it’s predicted that this number will rise to 86% by October 5.


Source: Power Profit Trades

https://powerprofittrades.com/2018/09/t ... /#deeplink
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Sun Nov 04, 2018 8:03 am

Buybacks

"For the first time in 10 years, buybacks are garnering the largest share of cash spending by S&P 500 firms," according to chief Goldman Sachs' U.S. equity strategist David Kostin.

According to Goldman Sachs, buybacks rose by nearly 50% (to $384 billion) in the first half of 2018.

And $754 billion in new stock buybacks have already been authorized this year, according to the New York Times. That's up 80% from the same period in 2017.

Stock repurchases could reach a record $1 trillion by November, according to Trim Tabs.

And those buybacks will continue to fuel the market's next leg up. In fact, companies are buying back so much stock that the number of shares available in the stock market is actually shrinking.

The number of S&P 500 shares has shrunk by 7.7% since the start of 2011.

And it's even higher for Dow stocks. 90% of all companies listed on the Dow are buying back stock.

An average of 14.7% of the outstanding shares in the Dow Industrials have disappeared in buy-backs in the last decade, according to Bespoke Investment Group.

Plus fewer outstanding shares also mean higher earnings and dividends per share ...

Which means those stocks get even more attractive to new investors who pile in and that drives prices even higher.

Record trillion-dollar buybacks and the best corporate earnings we may ever see in my lifetime alone would already be enough to fuel the next leg of this bull market.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Sun Nov 04, 2018 8:03 am

Buybacks

"For the first time in 10 years, buybacks are garnering the largest share of cash spending by S&P 500 firms," according to chief Goldman Sachs' U.S. equity strategist David Kostin.

According to Goldman Sachs, buybacks rose by nearly 50% (to $384 billion) in the first half of 2018.

And $754 billion in new stock buybacks have already been authorized this year, according to the New York Times. That's up 80% from the same period in 2017.

Stock repurchases could reach a record $1 trillion by November, according to Trim Tabs.

And those buybacks will continue to fuel the market's next leg up. In fact, companies are buying back so much stock that the number of shares available in the stock market is actually shrinking.

The number of S&P 500 shares has shrunk by 7.7% since the start of 2011.

And it's even higher for Dow stocks. 90% of all companies listed on the Dow are buying back stock.

An average of 14.7% of the outstanding shares in the Dow Industrials have disappeared in buy-backs in the last decade, according to Bespoke Investment Group.

Plus fewer outstanding shares also mean higher earnings and dividends per share ...

Which means those stocks get even more attractive to new investors who pile in and that drives prices even higher.

Record trillion-dollar buybacks and the best corporate earnings we may ever see in my lifetime alone would already be enough to fuel the next leg of this bull market.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Thu Feb 21, 2019 3:16 pm

Corporate stock buybacks are booming

by Julia La Roche

Activity is pacing 91% above last year’s levels, pointing to another record year.

To put that in context, 2018 was a record with U.S. companies putting more than $1 trillion toward stock buybacks.

Gundlach has warned of the elevated levels of corporate leverage, which have come as a direct result of companies using debt to finance stock buybacks.


Source: Yahoo Finance

https://finance.yahoo.com/news/corporat ... 23775.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: Buybacks ( General News )

Postby winston » Mon Oct 28, 2019 7:47 am

Goldman Sachs estimates that share buybacks among S&P 500 companies will hit US$940 billion in 2019, 13 percent more than last year.

Source: The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to Other Investment Instruments & Ideas

Who is online

Users browsing this forum: No registered users and 7 guests

cron