Teutonic Knight

Where Have All the Buybacks Gone?

Another way of looking at Mad Hedge Fund Trader's mentioned price for GE, C, BAC, etc. is that those are the bottom's where speculators or real investors are really willing to jump in with their sidelined cash -- for a gamble between sustained rebound or BK.

Until such time that it happens, no real recovery will be insight.

Ironically, the sooner we reach that stage, the better off will be for the economy at large.

Unfortunately, the government is still self-hypnotized to indulge in intervention to prolong that eventual climax - a sad and even tragic story.

Where Have All the Buybacks Gone?

Mad Hedge Fund Trader,

To answer your question, in the extreme worst case scenario, and also in my humble opinion, one could look to CHTR and IDARQ.PK as potential examples.

Both companies finally succumbed to Bankruptcies filings. In other words, they had to resort to that ultimate solution knowing that:

1) They do not have the financial means to buy back anything (drown in debt already);

2) Shareholders value has literally gone to ZERO - no need to buy back anything.

A shudder runs through my spine as this Rude Awakening is indeed true.

Teutonic

On Apr 10 12:11 PM Mad Hedge Fund Trader wrote:

> I was wondering the same thing.I have a question, Mr. Market. If
> General Electric (seekingalpha.com/symbo...) got down to
> $5, Bank of America (seekingalpha.com/symbo...) to $2, and
> Citigroup (seekingalpha.com/symbol/c) to $1, where were the
> share buybacks? Are these companies too broke to buy their own shares,
> or do they think a few bucks over zero is too much to pay? I’m not
> sure I like either answer, or even my own question.
>