In one of Ducati’s comments, he mentioned some possible future hammers to befall spasticly retarded bulls, one of which is: stock buyback lending.
It’s funny that he mentioned it, since I’m currently doing some research on the matter.
Here is a good read, albeit a bit dated.
The following companies (there are many, many more) wasted obscene amounts of capital, propping up their share prices, through unnecessary share repurchase plans.
- Countrywide (CFC)
- Home Depot (HD)
- Citigroup (C)
- Fannie Mae (FNM)
- Freddie Mac (FRE)
- Ambac (ABK)
- MBIA (MBI)
- Circuit City (CC)
- KB Home (KBH)
- Pulte Homes (PHM)
- Centex (CTX)
- Toll Brothers (TOL)
In short, CEO’s and members of boards will have to answer to the egregious mismanagement of shareholder dollars, which were squandered in buybacks. The numbers are in the hundreds of billions, all done to keep share prices artificially high, in order to do who knows what.
Burnt coin, if you ask me.
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MBI WILL FLY COME TUESDAY abk to~
Freddie Mack ? Mac !
🙂
Yeah… MBI will fly into oblivion.
Speaking of Ducati –
A bit of Sunday Trivia:
Who is Ducati’s idol? And why is Ducati so obsessed with patents?
Yeah, no one gives a shit (except bears on the wrong side of a trade) about egregious buybacks during a bull market phase.
Now, all that shit is gonna come home to roast.
Y’all need to go to church. Except juice.
How much lower will we go
Mark Mobius Says Emerging Market Stocks May Drop 20%
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBBnymy1splU
pab, I saw that Mobius article. Says 20% is normal
Fly, Do you expect emerging markets to drop more than 20%?
Juice, don’t know if this is true (sounds like net fiction) – einstein & charlie chaplin ended up in the same cab leaving some type of event in NYC. The cab was at a standstill with screaming fans with faces pressed against the windows trying to get a look at the celebs. (rumor has it that ducati was there)
Einstein confused by the situation asked Chaplin, “What does it all mean?”
Chaplin: “Absolutely nothing.”
Pab- Mobius is actually very bullish on the emerging markets. He says that if there is a recession in the US, (he doesn’t think there will be one) then emerging markets may drop 20%.
Believe me, being short India, Brazil, and China, I would like to see a 20% drop. However, in the interest of truth, the headline is misleading.
Fly, what is the purpose of your research? Is it to develop an idea of where the stocks would be trading without buybacks?
Mobius is an emerging markets expert, but I think he is wrong about US NOT going into recession.
I think NTRI did some buybacks also.
Boom,
Just got back. And the Giants playing in the NFC Championship Game tonight has nothing to do with it.
I swear.
Shed —
I think his point is that all firms have limited resources, and if a firm has forestalled devaluation of it’s stock (due to normal cyclic action or for whatever reason) by using limited capital to shore up that price artificially, then not only is that stock in greater trouble when external capital becomes scarce on the ground, but it’s quite possible that those stocks will fall even harder (than the mean) for lack of (long wasted) internal resources that could have been put forth shore up their actual business strategy.
Homebuilders should have bought more of their stock and less land
It makes sense to look at those stocks to short. One shelter in a downturn is a stock with a lot of cash, such as Microsoft. They can use the cash for acquisitions, capital investment, etc. But, if they burned through their cash they are vulnerable, unable to artificially spur growth.
DUG
Down with Rockefeller
Down with Rothschild
http://video.google.com/videoplay?docid=6224272538476202634&hl=en
Broker I am surprised you are not taking advantage of this massive price dip in MVIS to load some back on. If the selling was done because it was forced, and my fund friends said it was as well, then we have an inefficiency which should be used to bank profuse coin. Bearish or not the selling in the name was way overdone.
Jeff: Free Mason / Illuminati conspiratorial stuff. Pretty fascinating stuff. Probably there is some sort of truth in some of it. Its essentially the highest form of organized crime other than organized religions & governments themselves, the very organizations they try to infiltrate.
I’d take it all with a huge grain of salt but I wouldn’t entirely dismiss it.
Although imo, this journalist’s interpretations of what Rockefeller’s saying shows his paranoia for self serving/ self marketing / self agenda purposes. I think basically B. Fulford is a loon.
The executives of these companies knew exactly what they were doing, using excess capital to buy back shares. If you look at the insider trading at the companies listed, you will see lots of selling from the executives. Countrywide. Exxon. Etc. Basically, a big “fuck you” to the SEC, because this is all legal.
A few companies (not listed in your post) did not have the capital and borrowed money to buy back shares. =)
White Squall Coming.. Get ready for armageddon.
I need 80% of the companies to beat the street—next two weeks—
If they don’t then recession already started Q3—and look for a 20-35% bear correction—q4-q1-q2–
zee–
http://z-stock.blogspot.com/
http://consumerist.com/346829/bankrupt-mortgage-executive-kills-wife-self
think this foreshadows worse news coming?
Worse news than a murder suicide? What are you looking for BoomBoom ?
His op wasn’t the only one to go belly-up.
Purr-fect ! Asia, across the board, takin’ one (so far, the night be young) backdoor style, no K-Y.
Japan down 3.4% in early trading. Good, that will give me a better entry in that EWJ pos.
Like I said, I’m hoping for a horrid open Teusday am. I wanna get long for a trade. Go ahead, call me cute, I’ve been called worse.
juice – terrible, indeed. just wondering of we will see more acts of desperation in the near future.
Add SHLD to the list. That shitpot’s cost me enough money already.
Boomer .. you’re prob right .. this could be just the beginning of that type of thing, unfortunately