Is this really a good use of resources? I don't know when the company last sold shares, but I doubt it was at a price higher than it is now. I thought buybacks were done when an issuer thought their stock was undervalued and could purchase it for less than originally sold.
They could instead pay off all their outstanding notes, but considering the low rates on them, they could earn a risk free net return elsewhere.
Doubling their dividend could be an attractive option. They have been paying only .04 a quarter when they use to pay .16.
Companies lately have been choosing stock buyback plans rather than paying dividends or increasing them. While this can lead to a higher share price, it doesn't exactly return profits to investors like a dividend does.
Deciding what to do with excess cash is a difficult decision. Reinvestment helps a company grow. Paying dividends adds value. I just don't really see the benefit of buybacks unless there aren't any better opportunities. Not at these prices anyway. What do you think?
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