Sam E. Antar

If Insiders Are Unloading, Why Is BIDZ.Com Buying Back Shares?

Imagine if all the companies that bought back stock instead retained the capital, how many fewer companies would be in trouble today.


On Jul 07 12:22 PM wpdragon wrote:

> Follow the stock option awards. Many companies make a big deal out
> of announcing stock buybacks, but that is usually a crock... they
> merely buy back enough shares to replace newly minted shares produced
> by insider option exercises, so its a zero sum game - more shares
> outstanding due to the preferential option awards that get exercised,
> then the buyback to cover those shares.
>
> Net/net, the public shareholders get screwed because the cash to
> buy back those new shares comes right out of shareholder equity -
> and right into the insiders' pockets.
>
> And yet they have the nerve to look the shareholders in the face
> and say they are doing it because they think the shares are undervalued...
> bull!