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  • First Step to Fix the Markets: Let Shareholders Vote on Buybacks [View article]
    Dan, you have correctly identified a problem that has been going on for years. But there are two sides to the issue.

    I have owned companies whose management has greatly increased shareholder value by buying shares at discount prices, specifically Tessco (TESS).

    I can't remember the name but there was one company where the board establisehd value-based criteria to determine when buybacks were in the best interest of shareholders. The requirement of such criteria would improve corporate governance.

    As a thought, many companies are now trading under tangible book value per share: if the cash is available buybacks make a lot of sense under those conditions. Examples would be MBI and HTCH.

    So from my perspective a good solution would be to require boards to establish definite value-based criteria to support any buyback authorization.
    Jan 01 17:54 pm |Rating: 0 0
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