The Briefing Room
General Category => Economy/Business => Topic started by: catfish1957 on September 24, 2020, 04:02:28 pm
-
(https://farm8.staticflickr.com/7037/6870880911_04e930da12_z.jpg)
https://www.marketwatch.com/articles/companies-are-starting-to-buy-back-stock-again-51600961415?mod=mw_latestnews (https://www.marketwatch.com/articles/companies-are-starting-to-buy-back-stock-again-51600961415?mod=mw_latestnews)
<snipit>
Earlier this year, the pandemic led many companies across sectors to withdraw their full-year guidance. While some have yet to reinstate a forecast, an uptick in the resumption of share repurchases could give investors a positive indication of how confident companies feel about the recovery.
Stock buybacks are popular way for companies to return cash to shareholders because they reduce the number of shares outstanding. That means that earnings are divided among fewer shares, leading to higher earnings per share. Fewer shares can also improve other metrics, like return on equity.
==================================================================================
I have always been a proponent of watching or investing in companies that initiate active buy back programs. If a company isn't bullish on itself, why should anyone else be?
Second, and I haven't shared this in a bit. This site is a good one to check board sentiment. Acutally documents internal board transactions as required by SEC.
https://www.marketbeat.com/insider-trades/ (https://www.marketbeat.com/insider-trades/)
-
Thanks for intelligence.
Right now, I cannot but think the oils are being downgraded for no other reason but short term pullbacks on demand, but there is enormous long term upside inherent.
A lot of countries from Russia to OPEC members have a huge stake in seeing the return of higher prices and oils will benefit and the herd mentality kicks in, so I have been buying in before that time.
-
Thanks for intelligence.
Right now, I cannot but think the oils are being downgraded for no other reason but short term pullbacks on demand, but there is enormous long term upside inherent.
A lot of countries from Russia to OPEC members have a huge stake in seeing the return of higher prices and oils will benefit and the herd mentality kicks in, so I have been buying in before that time.
@IsailedawayfromFR
I'm an oil company annutiant, so I am heavily into my company stock in my 401K. Yes, pandemic demand is dictating Big Oil performance right now, but the enviro whackos have also falsely grabbed and pulled the alarm on this climate change debacle. There seems no fight in the companies to dispute the matter, and on that fact alone, I see oil fighting headwinds as an investment for the forseeable future. Increasingly efficent engines, increased demand for electric, lower demand, and a hostile legislative enviromnent??? ...... By 2024 I see the titans like CVX, XOM, BP, RDS, etc possibly in survival mode.
-
@IsailedawayfromFR
I'm an oil company annutiant, so I am heavily into my company stock in my 401K. Yes, pandemic demand is dictating Big Oil performance right now, but the enviro whackos have also falsely grabbed and pulled the alarm on this climate change debacle. There seems no fight in the companies to dispute the matter, and on that fact alone, I see oil fighting headwinds as an investment for the forseeable future. Increasingly efficent engines, increased demand for electric, lower demand, and a hostile legislative enviromnent??? ...... By 2024 I see the titans like CVX, XOM, BP, RDS, etc possibly in survival mode.
That's chilling (and will be for sure if that scenario plays out). My thoughts are the oils are not out there alone.
Many countries depend upon the oil revenue and will fight to see an increase in price. So oils will still profit, regardless of the climate hype.
As a microcosm of the anti-oil effort, California is in the process of throwing out most of its legacy oil businesses(and I cannot believe Chevron continues to HQ there). We are already witnessing the results of its policies in +$1 per gallon gas compared to most of the country, rolling blackouts, loss of tax revenues and jobs, etc. Even a recent pioneer of renewables Musk chooses to leave state to build electric cars.
People are not going to take the stupidity forever and realize they are duped. They will take off the mask they have been told to wear and will go back to enjoying the fruits of hydrocarbon.
PS - I am a retired petroleum economist and spent many years in domestic/international and corporate work.
-
Ok,in plain English so dummies like me can understand it,WTH does this mean?
-
Ok,in plain English so dummies like me can understand it,WTH does this mean?
1. Companies that buy back their own stock believe it will go up, not down. And profits per share owned will be higher.
2. Oil ain't going away, no matter how much some might wish it to.
-
1. Companies that buy back their own stock believe it will go up, not down. And profits per share owned will be higher.
@IsailedawayfromFR
Thanks. Now I understand.