RE:RE:RE:RE:RE:RE:RE:RE:RE:Taking small bitesporksniffer wrote: BlueHorseshoe02 wrote: Buffet buying back US $ 2.2B on buybacks vs internet trolls saying buybacks are ???? lmao
It'd be irresponsible of management NOT to buy back 10% of the share count every year at these prices once they pay down enough debt.
They can buy back 20% of the float every year with the current FCF and still grow revenues (and earnings even more) and not skip a beat.
Buybacks also are only reason Dow is at 29k and TSX still stuck at 17k. 10 years ago TSX was 3k higher than the Dow. US companies know the inherent advantage of stock buybacks.....most Canadian companies do not.
Epically moronic post. You just showed you know zero not only about markets but basic business as well. And comparing Buffet with $125 BILLION in cash to Corus? Wow. And for the record Buffet almost never buys back stock, it is his subtle way of admitting he missed the advance in US markets the past 5 years.
Corus already bought back a few million shares....and lost money on every single one. And guess what, the price is at a fresh year low. FCF on a flat to declining business with debt should be used either for sales growth or to pay down debt. Further to your moronic comparison to the Dow, the TSX spent almost a whole decade where gold stocks fell over 50% and oil sector fell over 60%. How could the TSX move higher when oil/gold made up 40% of the index? The US markets advance is comprised of 5-6 stocks making up 50% of the move higher.
Need to complement you for the fact based reply to BlueMan assertion that share buyback is what Corus needs.
I just would add that the "share buyback" epidemy in the US is directly related to Trump's tax cuts. Most of the big companies found themselves accumulating cash that they could not deploy at a reasonable rate of return, so they decided the next good thing for shareholders and that is share buyback. It needs to be stressed that none of them experienced what Corus does for several years already, that is a declining revenue.