CASH-RICH CORPORATIONS (PRIMARILY TECH & HEALTHCARE) SET TO POUR $2.5T INTO BUYBACKS, DIVIDENDS & M&A IN 2018 — SOURCE: 06-04-18 CNBC, Jeff Cox – “Cash-rich companies are set to pour $2.5 trillion into buybacks, dividends and M&A this year” — Companies are expected to push $2.5 trillion of “flow” into the economy this year in […]
SHARE BUYBACKS DUE TO REPATRIATED FOREIGN CASH REACHED HIGHEST LEVEL ON RECORD DURING Q1 — SOURCE 06-05-18 BoA via ZeroHedge – “The Q1 Results Are In And… Spending On Share Buybacks Hits All Time High — In addition to being one the best quarter for corporate earnings growth since 2011 due to Trump’s corporate tax […]
THE OVERWHELMING BUYER OF STOCKS ARE NON-FINANCIAL CORPORATIONS — SOURCE: 10-25-17 Goldman Sachs, Credit Suisse via ZeroHedge – “This Will Be The Biggest Buyer Of Stocks In 2018” — In July, many were surprised to learn (even though we have shown this many times prior), that according to Credit Suisse analysts there has been just one buyer […]
RALPH NADER: HOW CEO STOCK BUYBACKS PARASITIZE THE ECONOMY Ralph Nader just recently did an in-depth expose on the problems with share repurchases. To wit: “The monster of economic waste—over $7 trillion of dictated stock buybacks since 2003 by the self-enriching CEOs of large corporations—started with a little-noticed change in 1982 by the Securities and Exchange Commission (SEC) […]
US STOCK BUYBACKS IN BIGGEST SLIDE SINCE FINANCIAL CRISIS — SOURCE: 08-14-17 ZeroHedge – “US Stock Buybacks In Biggest Slide Since The Financial Crisis” — In light of today’s euphoric market reaction, which has seen the VIX plunge by over 3 vols, or 20% lower, to just over 12 and sent both the Nasdaq and […]
US CORPORATE BUYBACKS HAVE DISTORTED LEVERAGE BETWEEN THE US & EUROZONE –SOURCE: 04-29-17 The Heisenberg Report – “Oops: The Buyback Party Is Over” — The debt that funds buybacks is being issued at artificially suppressed rates. This is just balance sheet leveraging or financial engineering assisted by central banks. It’s creating a leverage problem that looks […]
