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Old 09-24-2018, 02:18 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,594
Buybacks and fleeing insiders

9/24 Rudy Giuliani: “We’re going to overthrow Iran” – Mish
9/24 OPEC, Russia rebuff Trump’s call for immediate boost to oil output – CNBC
The war hawks can't attack Iran and remove their oil production if OPEC and Russia won't bump up outside oil production. Iran was last on the list of States to be invaded. Everyone knows that Russia would have been number 8. It really does NOT matter. An attack on Iran would bring a shutdown of 80% of the oil supply for the West. Iran could be destroyed at the expense of; a complete economic crash in 90% of the world.

"The primary reason why stock prices have been soaring in recent months is because corporations have been buying back their own stock at an unprecedented pace. In fact, the pace of stock buybacks is nearly double what it was at this time last year. According to Goldman Sachs, S&P 500 companies spent 384 billion dollars buying back stock during the first half of 2018. That is an absolutely astounding number. And in many cases, corporations are going deep into debt in order to do this."
"So in the end, stock buybacks are often all about greed. It is a way to funnel money to those at the very top of the pyramid, and those stock market gains are taxed at capital gains rates which are much lower than the rates on normal income."

"It is being projected that firms will spend more than 600 billion dollars on stock buybacks during the second half of this year, and that will bring the grand total for 2018 to more than a trillion dollars…"
"the previous annual record for stock buybacks was just 589 billion dollars in 2007.
This year, we may come close to doubling the previous record."
"As I noted earlier, corporate insiders greatly benefit from stock buybacks, and they took advantage of massively inflated stock prices by selling off $10.3 billion worth of their shares during the month of August."
Buybacks are used to inflate the price. When it is inflated to a peak, the insiders sell out.
"Inflating your stock price by cannibalizing your own shares is not a good long-term strategy for any corporation"
Once again,we see a divergence between what is good for a corporation and,,, what is good for individuals in the corporation.

"Wall Street is inhabited by con men that are promoting Ponzi scheme after Ponzi scheme, and it is only a matter of time before the entire system collapses under its own weight."
"In 2007 corporations were pouring hundreds of billions of dollars into stock buybacks, and it propped up the market for a time. But eventually the bubble burst and the crisis of 2008 was so dramatic that it will be remembered forever.

Now we are facing a similar scenario, and it is just a matter of time before this bubble bursts as well."
Stock Prices Are Surging Because Corporations Are Spending More Money On Stock Buybacks Than Anything Else

" the results are likely be very different from 2008 — corporate meltdowns rather than mortgage defaults, and bond and pension funds affected before big investment banks."
But what would be the trigger for said corporate meltdown?
According to a new report from Goldman Sachs, the most likely precipitating factor would be rising interest rates"

" Companies have announced them this year at a rate of more than $5 billion a day. The buyback boom has been viewed by investors as a sign of confidence among CEOs.

Yet with their own money, executives are quietly taking a much different approach: They're cashing out.
Insiders dumped $8.4 billion of their shares in May and $9.2 billion in June, according to an analysis of regulatory filings by TrimTabs Investment Research. That's the biggest two-month period of insider selling in a year.
"They're buying back from the front door, and shoveling shares out the back door,"
A couple of notes on Brexit.
Investors don't like uncertainty and, you can expect the Pound to get weaker.

The chosenites are on a tear.
"The Israeli government has recently claimed that it can “legislate anywhere in the world”, that it is “entitled to violate the sovereignty of foreign countries”, and that “is allowed to ignore the directives of international law in any field it desires”. This was written in an official response letter to the Supreme Court last month."

9/24 Beware zombies: BIS warns non-viable firms are crippling growth – ZH
Maybe so but, they are keeping people employed..
9/24 Venezuela’s Maduro looks to China for bailout – Oil Price
He already burned through the cash that he got from Russia.
9/24 This is the “last free generation” says Julian Assange – Zero Hedge
It is worse in China,

Last edited by Danny B; 09-24-2018 at 02:30 PM. Reason: mis
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