Thursday, January 24, 2008
Why aren't there any stock repurchase programs when investors could really use them? Corporations frequently buy their own shares in the open market as a way of maintaining the stock price, yet buybacks are down. A Wall St. Journal article suggests several reasons: corporations used up their available cash buying shares at more expensive prices, corporations are reluctant to spend cash in these times of financial crisis, buybacks are a sign of confidence in the market, which is lacking these days, there is no longer the need for defensive buybacks. WSJ, Where Have Buybacks Gone?