the world has gone mad..., page-8

macrae12...

Yes...the buy-backs are a clear signal.

Can be a twofold message however...

1. Clearly stocks that are trading so far under fair value (in some cases), offer their respective company's an obvious value enhancement path via register reduction at such an opportunte time.

2. Alternatively, buy-backs can bee seen as a flag that the respective company's have run out of ideas...or that the economy is not conducive to value-adding activity.

Certainly, for some sectors the latter may well be the case.

This would not apply to most of the resource "staples" however, such as copper, iron and energy stocks...and of course some of the cyclicals.

Time to buy in my view...of course we risk going in early, but waiting for the pack to turn will see a significant opportunity loss.

Cheers!