Should Buy Backs be Banned???, page-16

If ur a shareholder, a BB is a great thing. A BB is just another form of dividend to the shareholder (which you all should know). When the company has limited investment opportunities, and it is holding excess cash, Why not give it back to the shareholders??? Obviously, if ur strong on day trading and keen to short a company with a BB, u really would be trading on a limb of hope.

Banks completing BB do not indicate economic problems, they in fact re iterate that the economy is quite robust and strong. If the bank can afford to forecast increased dividends into perpetuity and still complete a large buy back, then the bank certainly is generating enough funds, even from its present customer base. Dont hold ur breath, but BB are a strong makt signal that "yes where in good shape". Fundamentally, companies that have less exposure to equity markets are less likely to make short term decisions that favour the objectives of equity holders, which in the long term may not be positive to the performance of the company itself.