this guy is buying more shares back.., page-50

bitzer, you are correct:

When Buybacks Fail
Some of the time, share buybacks can be a great thing. But oftentimes, they can be a downright bad idea and can hurt shareholders. This can happen when buybacks are done in the following circumstances:

1. When Shares Are Overvalued
For starters, buybacks should only be pursued when management is very confident the shares are undervalued. After all, companies are no different than regular investors. If a company is buying up shares for $15 each when they are only worth $10, the company is clearly making a poor investment decision. A company buying overvalued stock is destroying shareholder value and would be better off paying that cash out as a dividend, so that shareholders can invest it more effectively.

As investors, we should look more closely at share buybacks. Look in the financial reports for details. See whether stock is being awarded to employees and whether repurchased shares are being bought when the shares are a good price. A company buying back overvalued stock is destroying shareholder value


Cheers, Skip