RE:RE:RE:RE:RE:RE:Share Price Punished?That is exactly what some people don't get about buybacks. Not only do they reduce
the outstanding shares, they also put the dividends that the company had to pay out
to shareholders for those shares back into the companies pocket book. Its a bit of
a double whammy effect. It really saves money for the company despite having to
pay out of FCF initially to buy those same shares. The benefit may not be felt
immediately but down the road it certainly will. This is especially advantageous when
stock prices are low but cash reserves might be high. Why not invest in your own
company as opposed to acquiring another if it means taking on debt.