Tuesday, June 04, 2013

Stock Buybacks Often are Misleading

My comments to this post by Jeffrey Pfeffer were not posted, which is obviously his right. My two requests for clarification that it was actually a decision and not just wasting my time due to a bad process that didn't even allow someone to make a decision to post it or not (the post has a great total of 0 comments and is requesting that people make comments).

Sometimes those that have lots of fans don't bother with comments. That is fine. But requesting comments and feedback and then not providing any responses I find doesn't show much respect for people.

 Why Does Apple Care About Its Share Price?
Put simply, executives should spend more time on product development and customers and less time worrying about something (their stock price) that is more outside their control.
As a stockholder I agree with you. Apple has continued to have a great cash flow. Mainly they should focus on that. Apple has diluted stockholder equity by over 10% over the last 7 years with massive stock grants to executives. The $50 billion buyback is unlikely to even return outstanding stock levels to the level of 7 years ago.

Along with the excessive nature of their cash balance (I am all for keeping some money for a raining day and keeping money to invest in research and new market but they have $100 billion more than they need for that) and stockholder dilution they have practiced putting some cash to use reducing the stockholder dilution makes sense to me.

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