L Boyd

Corporate America's Unhealthy Love for Buybacks and Dividends

I'm not sure I follow the logic here? How is taking (what will prove to be) precious cash to buy back stock at inflated values, only to have have to sell shares at whatever they can get (significantly lower prices), in many cases simply for working capital needs, a good strategy? While it may have been better than funneling that cash into capex for no apparent reason, I suspect most did it because they saw no other alternative and wanted to give positive signals to the market; after all everybody else was doing it. The short term, quarter to quarter, time horizon of the Street is very much to blame.

On Dec 29 07:51 AM CLH wrote:

> Growth certainly makes no sense during a time of contraction. Seems
> to me companies were right.